A Mechanism for Optimizing Media Recommender Systems
Brian McFadden
TL;DR
The paper addresses the fundamental trade-off between media producers seeking greater reach and consumers allocating attention based on the rate of utility, by modeling content distribution as a sequence of distributions $D$ that converge to an optimal $D^*$ where $M(D^*)=N(D^*)$.A mechanism based on the media-source value $V(D)=E(T|D)\,M(D)$ and incremental changes $\Delta_V$ guides the construction of $D^*$ and an associated algorithm to automatically generate a Pareto-efficient Nash equilibrium across stakeholders.The analysis identifies conditions under which deviations beyond $D^*$ are warranted, introducing thresholds $\kappa_r$, $X_{l\kappa}$, and $X_{u\kappa}$ and distinguishing adaptive versus reactive consumer behavior; in many cases, $D^*$ remains optimal, with carveouts enabling Pareto improvements when moving beyond $D^*$ is viable.Compared to existing recommender-system literature, the mechanism endogenously determines content volume and balances multiple objectives without monetary transfers, offering a normative, algorithmic path toward sustainable participation and multiobjective optimization.
Abstract
A mechanism is described that addresses the fundamental trade off between media producers who want to increase reach and consumers who provide attention based on the rate of utility received, and where overreach negatively impacts that rate. An optimal solution can be achieved when the media source considers the impact of overreach in a cost function used in determining the optimal distribution of content to maximize individual consumer utility and participation. The result is a Nash equilibrium between producer and consumer that is also Pareto efficient. Comparison with the literature on Recommender systems highlights the advantages of the mechanism, including identifying an optimal content volume for the consumer and improvements for optimizing with multiple objectives. A practical algorithm for generating the optimal distribution for each consumer is provided.
