Stephan Leitner

Nada Ghanem, Stephan Leitner, Dietmar Jannach

Automated recommendations can nowadays be found on many e-commerce platforms, and such recommendations can create substantial value for consumers and providers. Often, however, not all recommendable items have the same profit margin, and providers might thus be tempted to promote items that maximize their profit. In the short run, consumers might accept non-optimal recommendations, but they may lose their trust in the long run. Ultimately, this leads to the problem of designing balanced recommendation strategies, which consider both consumer and provider value and lead to sustained business success. This work proposes a simulation framework based on agent-based modeling designed to help providers explore longitudinal dynamics of different recommendation strategies. In our model, consumer agents receive recommendations from providers, and the perceived quality of the recommendations influences the consumers' trust over time. We design several recommendation strategies which either give more weight on provider profit or on consumer utility. Our simulations show that a hybrid strategy that puts more weight on consumer utility but without ignoring profitability considerations leads to the highest cumulative profit in the long run. This hybrid strategy results in a profit increase of about 20 % compared to pure consumer or profit oriented strategies. We also find that social media can reinforce the observed phenomena. In case when consumers heavily rely on social media, the cumulative profit of the best strategy further increases. To ensure reproducibility and foster future research, we publicly share our flexible simulation framework.

Marlene Holzleitner, Stephan Leitner, Hanna Lind Jorgensen et al.

Personalized news recommendations have become a standard feature of large news aggregation services, optimizing user engagement through automated content selection. In contrast, legacy news media often approach personalization cautiously, striving to balance technological innovation with core editorial values. As a result, online platforms of traditional news outlets typically combine editorially curated content with algorithmically selected articles - a strategy we term controlled personalization. In this industry paper, we evaluate the effectiveness of controlled personalization through an A/B test conducted on the website of a major Norwegian legacy news organization. Our findings indicate that even a modest level of personalization yields substantial benefits. Specifically, we observe that users exposed to personalized content demonstrate higher click-through rates and reduced navigation effort, suggesting improved discovery of relevant content. Moreover, our analysis reveals that controlled personalization contributes to greater content diversity and catalog coverage and in addition reduces popularity bias. Overall, our results suggest that controlled personalization can successfully align user needs with editorial goals, offering a viable path for legacy media to adopt personalization technologies while upholding journalistic values.

Gediminas Adomavicius, Dietmar Jannach, Stephan Leitner et al.

Today's research in recommender systems is largely based on experimental designs that are static in a sense that they do not consider potential longitudinal effects of providing recommendations to users. In reality, however, various important and interesting phenomena only emerge or become visible over time, e.g., when a recommender system continuously reinforces the popularity of already successful artists on a music streaming site or when recommendations that aim at profit maximization lead to a loss of consumer trust in the long run. In this paper, we discuss how Agent-Based Modeling and Simulation (ABM) techniques can be used to study such important longitudinal dynamics of recommender systems. To that purpose, we provide an overview of the ABM principles, outline a simulation framework for recommender systems based on the literature, and discuss various practical research questions that can be addressed with such an ABM-based simulation framework.

Joop van de Heijning, Stephan Leitner, Alexandra Rausch

This work researches the impact of including a wider range of participants in the strategy-making process on the performance of organizations which operate in either moderately or highly complex environments. Agent-based simulation demonstrates that the increased number of ideas generated from larger and diverse crowds and subsequent preference aggregation lead to rapid discovery of higher peaks in the organization's performance landscape. However, this is not the case when the expansion in the number of participants is small. The results confirm the most frequently mentioned benefit in the Open Strategy literature: the discovery of better performing strategies.