Presents a dynamic, multi-stage framework that reconceptualizes privacy as an evolving customer experience, not a one-time data disclosure or breach event, to help firms anticipate customer responses, tailor interventions, and maintain trust over time.
What happens when governments regulate how platforms recommend products? A new study examining Amazon's compliance with the UK’s Competition and Markets Authority rule—banning the use of Prime eligibility to determine “Featured Offers”—finds both gains and trade-offs. While the regulation did reduce self-preferencing and boosted price competition, it also led to fewer consumer purchases and lower product ratings, especially in niche markets.
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Prohibiting self-preferencing by an online retailer’s recommendation algorithm aims to protect consumers but may have unintended consequences depending on how sellers and buyers respond. The UK’s regulation of Amazon’s algorithm did promote price competition, but primarily in lower-rated niche markets while reducing overall variety, consumer purchases and average product ratings.
Uses UK regulation of Amazon’s recommendation algorithm as a natural experiment for a difference-in-differences analysis of its impact on product variety, quality, price and purchase in niche markets.