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We introduce a fully probabilistic framework of consumer product choice based on quality assessment. It allows us to capture many aspects of marketing such as partial information asymmetry, quality differentiation, and product placement in a supermarket.
Using heat conduction mechanism on a social network we develop a systematic method to predict missing values as recommendations. This method can treat very large matrices that are typical of internet communities. In particular, with an innovative, ex act formulation that accommodates arbitrary boundary condition, our method is easy to use in real applications. The performance is assessed by comparing with traditional recommendation methods using real data.
Information overload in the modern society calls for highly efficient recommendation algorithms. In this letter we present a novel diffusion based recommendation model, with users ratings built into a transition matrix. To speed up computation we int roduce a Green function method. The numerical tests on a benchmark database show that our prediction is superior to the standard recommendation methods.
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