Why Online Trading Platforms May Want to Inaccurately Profile You
Featuring Rajib Saha
Research says digital marketplaces charging per click may deliberately provide imprecise user profiles—boosting ad revenues while harming users.
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Rajib Saha
Associate Professor of Information Systems. His research focuses on the economics of IT, data mining, and digital business models. He particularly examines issues related to platforms, pricing and delivery of digital goods, B2B contracts, and network analytics.
Key Takeaways
- Ad-based platforms may misprofile users on purpose. Platforms charging per discovery can earn more by profiling buyers less accurately to drive up ad bids.
- Transaction-based models encourage accurate profiling. Platforms that earn from completed sales benefit from better matches, improving both profits and social welfare.
- Platform incentives can clash with user interests. Even without technical limits, platforms may choose less accurate profiling for profit, raising policy concerns.