Journal article

The Benefits of Social Influence in Optimized Cultural Markets

Andres Abeliuk, Gerardo Berbeglia, Manuel Cebrian, Pascal Van Hentenryck

PLoS One | PUBLIC LIBRARY SCIENCE | Published : 2015

Abstract

Social influence has been shown to create significant unpredictability in cultural markets, providing one potential explanation why experts routinely fail at predicting commercial success of cultural products. As a result, social influence is often presented in a negative light. Here, we show the benefits of social influence for cultural markets. We present a policy that uses product quality, appeal, position bias and social influence to maximize expected profits in the market. Our computational experiments show that our profit-maximizing policy leverages social influence to produce significant performance benefits for the market, while our theoretical analysis proves that our policy outperf..

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University of Melbourne Researchers