We present the results of two controlled behavioral studies on the effects of online recommendations on consumers' economic behavior. In the first study, we found strong evidence that participants' willingness to pay was significantly affected by randomly assigned song recommendations, even when controlling for participants' preferences and demographics. In the second study, we presented participants with actual system-generated recommendations that were intentionally perturbed (i.e., significant error was introduced) and observed similar effects on willingness to pay. The results have significant implications for the design and application of recommender systems as well as for e-commerce practice.
|Original language||English (US)|
|Number of pages||6|
|Journal||CEUR Workshop Proceedings|
|State||Published - Dec 1 2012|