Efficiency versus fairness in link recommendation algorithms

Michel Grabisch (), Antoine Mandel and Agnieszka Rusinowska ()
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Michel Grabisch: Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne, Paris School of Economics, https://cv.hal.science/michel-grabisch
Agnieszka Rusinowska: CNRS, Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne, Paris School of Economics, https://cv.hal.science/arusinowsk

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We investigate algorithmic fairness in a model of network formation governed by recommendation algorithms. The model defines a Markov chain over network configurations, which converges towards a class of efficient networks where each agent maximizes its utility. In this setting, we measure the efficiency of a recommendation algorithm via the speed at which it reaches the recurrent class of efficient networks. We propose a micro-founded measure of fairness that coincides with the entropy of the invariant distribution associated to this Markov chain. We develop analytical and numerical methods for the computation of efficiency and fairness. We find a strong relationship between the structure of users' preferences and the properties of recommendation algorithms. In particular, we show that there is a trade-off between efficiency and fairness as the hierarchical recommendation algorithms that ensure fast convergence to efficient networks are also those that lead to high level of unfairness. We put forward a simple solution to this trade-off where the designer adapts the recommendation algorithm to the different phases of the network formation process

Keywords: network formation; platform; link recommendation; algorithm; markov chain; efficiency; fairness (search for similar items in EconPapers)
JEL-codes: C65 D83 D85 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2025-01
New Economics Papers: this item is included in nep-net and nep-upt
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