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This page intentionally left blank
 Recommender Systems
An Introduction

In this age of information overload, people use a variety of strategies to make choices
about what to buy, how to spend their leisure time, and even whom to date. Recom-
mender systems automate some of these strategies with the goal of providing afford-
able, personal, and high-quality recommendations. This book offers an overview of
approaches to developing state-of-the-art recommender systems. The authors present
current algorithmic approaches for generating personalized buying proposals, such as
collaborative and content-based filtering, as well as more interactive and knowledge-
based approaches. They also discuss how to measure the effectiveness of recommender
systems and illustrate the methods with practical case studies. The authors also cover
emerging topics such as recommender systems in the social web and consumer buying
behavior theory. Suitable for computer science researchers and students interested in
getting an overview of the field, this book will also be useful for professionals looking
for the right technology to build real-world recommender systems.

dietmar jannach is a Chaired Professor of computer science at Technische Uni-

versität Dortmund, Germany. The author of more than one hundred scientific papers,
he is a member of the editorial board of the Applied Intelligence journal and the review
board of the International Journal of Electronic Commerce.

markus zanker is an Assistant Professor in the Department for Applied Informatics

and the director of the study program Information Management at Alpen-Adria Uni-
versität Klagenfurt, Austria. He is an associate editor of the International Journal of
Human-Computer Studies and cofounder and director of ConfigWorks GmbH.

alexander felfernig is University Professor at Technische Universität Graz,

Austria. His research in recommender and configuration systems was honored in 2009
with the Heinz Zemanek Award. Felfernig has published more than 130 scientific papers,
is a review board member of the International Journal of Electronic Commerce, and is
a cofounder of ConfigWorks GmbH.

gerhard friedrich is a Chaired Professor at Alpen-Adria Universität Klagen-

furt, Austria, where he is head of the Institute of Applied Informatics and directs the
Intelligent Systems and Business Informatics research group. He is an editor of AI Com-
munications and an associate editor of the International Journal of Mass Customisation.
Recommender Systems
An Introduction

DIETMAR JANNACH
Technische Universität Dortmund

MARKUS ZANKER
Alpen-Adria Universität Klagenfurt

ALEXANDER FELFERNIG
Technische Universität Graz

GERHARD FRIEDRICH
Alpen-Adria Universität Klagenfurt
 cambridge university press
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore,
São Paulo, Delhi, Dubai, Tokyo, Mexico City

Cambridge University Press

32 Avenue of the Americas, New York, NY 10013-2473, USA
www.cambridge.org
Information on this title: www.cambridge.org/9780521493369

© Dietmar Jannach, Markus Zanker, Alexander Felfernig, and Gerhard Friedrich 2011

This publication is in copyright. Subject to statutory exception

and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without the written
permission of Cambridge University Press.

First published 2011

Printed in the United States of America

A catalog record for this publication is available from the British Library.

Library of Congress Cataloging in Publication data

Recommender systems : an introduction / Dietmar Jannach . . . [et al.].
p. cm.
Includes bibliographical references and index.
ISBN 978-0-521-49336-9 (hardback)
1. Personal communication service systems. 2. Recommender systems
(Information filtering) I. Jannach, Dietmar, 1973– II. Title.
TK5103.485.R43 2010
006.3
3 – dc22 2010021870

ISBN 978-0-521-49336-9 Hardback

Additional resources for this publication at http:www.recommenderbook.net/

Cambridge University Press has no responsibility for the persistence or accuracy of URLs
for external or third-party Internet web sites referred to in this publication and does not
guarantee that any content on such web sites is, or will remain, accurate or appropriate.
 Contents

Foreword by Joseph A. Konstan page ix

Preface xiii

1 Introduction 1
1.1 Part I: Introduction to basic concepts 2
1.2 Part II: Recent developments 8

PART I: INTRODUCTION TO BASIC CONCEPTS

2 Collaborative recommendation 13
2.1 User-based nearest neighbor recommendation 13
2.2 Item-based nearest neighbor recommendation 18
2.3 About ratings 22
2.4 Further model-based and preprocessing-based approaches 26
2.5 Recent practical approaches and systems 40
2.6 Discussion and summary 47
2.7 Bibliographical notes 49

3 Content-based recommendation 51
3.1 Content representation and content similarity 52
3.2 Similarity-based retrieval 58
3.3 Other text classification methods 63
3.4 Discussion 74
3.5 Summary 77
3.6 Bibliographical notes 79

4 Knowledge-based recommendation 81
4.1 Introduction 81

v
vi Contents

4.2 Knowledge representation and reasoning 82

4.3 Interacting with constraint-based recommenders 87
4.4 Interacting with case-based recommenders 101
4.5 Example applications 113
4.6 Bibliographical notes 122

5 Hybrid recommendation approaches 124

5.1 Opportunities for hybridization 125
5.2 Monolithic hybridization design 129
5.3 Parallelized hybridization design 134
5.4 Pipelined hybridization design 138
5.5 Discussion and summary 141
5.6 Bibliographical notes 142

6 Explanations in recommender systems 143

6.1 Introduction 143
6.2 Explanations in constraint-based recommenders 147
6.3 Explanations in case-based recommenders 157
6.4 Explanations in collaborative filtering recommenders 161
6.5 Summary 165

7 Evaluating recommender systems 166

7.1 Introduction 166
7.2 General properties of evaluation research 167
7.3 Popular evaluation designs 175
7.4 Evaluation on historical datasets 177
7.5 Alternate evaluation designs 184
7.6 Summary 187
7.7 Bibliographical notes 188

8 Case study: Personalized game recommendations on the

mobile Internet 189
8.1 Application and personalization overview 191
8.2 Algorithms and ratings 193
8.3 Evaluation 194
8.4 Summary and conclusions 206

PART II: RECENT DEVELOPMENTS

9 Attacks on collaborative recommender systems 211
9.1 A first example 212
 Contents vii

9.2 Attack dimensions 213

9.3 Attack types 214
9.4 Evaluation of effectiveness and countermeasures 219
9.5 Countermeasures 221
9.6 Privacy aspects – distributed collaborative filtering 225
9.7 Discussion 232

10 Online consumer decision making 234

10.1 Introduction 234
10.2 Context effects 236
10.3 Primacy/recency effects 240
10.4 Further effects 243
10.5 Personality and social psychology 245
10.6 Bibliographical notes 252

11 Recommender systems and the next-generation web 253

11.1 Trust-aware recommender systems 254
11.2 Folksonomies and more 262
11.3 Ontological filtering 279
11.4 Extracting semantics from the web 285
11.5 Summary 288

12 Recommendations in ubiquitous environments 289

12.1 Introduction 289
12.2 Context-aware recommendation 291
12.3 Application domains 294
12.4 Summary 297

13 Summary and outlook 299

13.1 Summary 299
13.2 Outlook 300

Bibliography 305
Index 333
 Foreword

It was a seductively simple idea that emerged in the early 1990s – to harness
the opinions of millions of people online in an effort to help all of us find more
useful and interesting content. And, indeed, in various domains and in various
forms, this simple idea proved effective. The PARC Tapestry system (Goldberg
et al. 1992) introduced the idea (and terminology) of collaborative filtering and
showed how both explicit annotation data and implicit behavioral data could
be collected into a queryable database and tapped by users to produce personal
filters. Less than two years later, the GroupLens system (Resnick et al. 1994)
showed that the collaborative filtering approach could be both distributed across
a network and automated. Whereas GroupLens performed automated collab-
orative filtering to Usenet news messages, the Ringo system at Massachusetts
Institute of Technology (MIT) (Shardanand and Maes 1995) did the same for
music albums and artists and the Bellcore Video Recommender (Hill et al.
1995) did the same for movies. Each of these systems used similar automa-
tion techniques – algorithms that identified other users with similar tastes and
combined their ratings together into a personalized, weighted average. This
simple “k-nearest neighbor” algorithm proved so effective that it quickly be-
came the gold standard against which all collaborative filtering algorithms were
compared.

Systems-oriented exploration. With hindsight, it is now clear that these early

collaborative filtering systems were important examples from the first of four
overlapping phases of recommender systems advances. This systems-oriented
exploration stage – through not only collaborative filtering but also knowledge-
based systems such as the FindMe systems (Burke et al. 1996) – demonstrated
the feasibility and efficacy of recommender systems and generated substantial
excitement to move the field forward, in both research and commercial practice.
(I do not mean to imply that these early research efforts did not also explore

ix
x Foreword

algorithms and design alternatives, but to a great extent we were so excited that
“the dog sang” that we did not worry too much about whether it was perfectly
in tune.)
A key event in this phase was the Collaborative Filtering Workshop at
Berkeley in March 1996. This gathering helped coalesce the community, bring-
ing together people working on personalized and nonpersonalized systems,
on divergent algorithmic approaches (from statistical summaries to k-nearest
neighbor to Bayesian clustering), and on different domains. By the end of the
day, there was a consensus that these were all aspects of one larger problem –
a problem that quickly became known as recommender systems, thanks in part
to a special issue of Communications of the ACM that grew out of the workshop
(Resnick and Varian 1997).

Rapid commercialization – the challenges of scale and value. Recom-

mender systems emerged into a rapidly expanding Internet business climate, and
commercialization was almost immediate. Pattie Maes’s group at MIT founded
Agents, Inc., in 1995 (later renamed Firefly Networks). Our GroupLens group
at Minnesota founded Net Perceptions in 1996. Many other companies emerged
as well. Quickly, we started to face real-world challenges largely unknown in
the research lab. To succeed, companies had to move beyond demonstrating
accurate predictions. We had to show that we could provide valuable recom-
mendations – usually in the form of selecting a few particular products to
recommend that would yield additional purchases – and that we could do so
without slowing down existing web sites. These systems had to work at greater-
than-research scales – handling millions of users and items and hundreds or
thousands of transactions per second. It is perhaps no surprise that the first book
on recommender systems, John Riedl’s and my Word of Mouse, was targeted
not at researchers but at marketing professionals.
Research at the time moved forward to address many of these technological
challenges. New algorithms were developed to reduce online computation time,
including item-based correlation algorithms and dimensionality-reduction ap-
proaches, both of which are still used today. Researchers became more in-
terested in evaluating recommenders based on “top-n” recommendation list
metrics. A wide set of research explored issues related to implicit ratings,
startup issues for new users and new items, and issues related to user experi-
ence, including trust, explanation, and transparency.

Research explosion – recommenders go mainstream. Somewhere between

2000 and 2005, many of the recommender systems companies dried up,
 Foreword xi

imploding with the Internet bubble or simply unable to compete with more
mainstream companies that integrated recommendation into a broader set of
business tools. As a technology, however, recommender systems were here to
stay, with wide usage in e-commerce, broader retail, and a variety of knowledge
management applications.
At the same time, research in recommender systems exploded with an infu-
sion of people and approaches from many disciplines. From across the spectrum
of artificial intelligence, information retrieval, data mining, security and privacy,
and business and marketing research emerged new analyses and approaches to
recommender systems. The algorithmic research was fueled by the availability
of large datasets and then ignited by the 2006 announcement of the $1 million
Netflix Prize for a 10 percent improvement in prediction accuracy.

Moving forward – recommenders in context. The excitement of the Netflix

Prize brought many researchers together in heroic efforts to improve predic-
tion accuracy. But even as these researchers closed in on success, a wave of
researchers and practitioners were arguing for a step back toward the values
of exploration and value. In 2006, MyStrands organized Recommenders06, a
summer school on the present and future of recommender systems. In 2007, I
organized the first ACM Recommender Systems Conference – a conference that
has grown from 120 people to more than 300 in 2009. A look at the programs
of these events shows increased interest in viewing recommendation in context,
retooling research to ground it in an understanding of how people interact with
organizations or businesses, and how recommendations can facilitate those in-
teractions. Indeed, even though the field was nearly unanimously excited by
the success of Netflix in bringing in new ideas, most of us also realized that an
elaborate algorithm that improved predictions of just how much a user would
dislike a set of bad movies did not help the user or Netflix. It is telling that the
2009 best-paper award went to a paper that demonstrated the flaws in the field’s
traditional “hold some data back” method of evaluating algorithms (Marlin and
Zemel 2009), and that the most cited recent research paper on recommender
systems is one that lays out how to match evaluation to user needs (Herlocker
et al. 2004).
That brings us to this book. Behind the modest subtitle of “an introduction”
lies the type of work the field needs to do to consolidate its learnings and move
forward to address new challenges. Across the chapters that follow lies both
a tour of what the field knows well – a diverse collection of algorithms and
approaches to recommendation – and a snapshot of where the field is today, as
new approaches derived from social computing and the semantic web find their
xii Foreword

place in the recommender systems toolbox. Let us all hope that this worthy
effort spurs yet more creativity and innovation to help recommender systems
move forward to new heights.

Joseph A. Konstan
Distinguished McKnight Professor
Department of Computer Science and Engineering
University of Minnesota
 Preface

“Which digital camera should I buy? What is the best holiday for me and
my family? Which is the best investment for supporting the education of my
children? Which movie should I rent? Which web sites will I find interesting?
Which book should I buy for my next vacation? Which degree and university
are the best for my future?”
It is easy to expand this list with many examples in which people have to
make decisions about how they want to spend their money or, on a broader
level, about their future.
Traditionally, people have used a variety of strategies to solve such decision-
making problems: conversations with friends, obtaining information from a
trusted third party, hiring an expert team, consulting the Internet, using various
methods from decision theory (if one tries to be rational), making a gut decision,
or simply following the crowd.
However, almost everyone has experienced a situation in which the advice
of a friendly sales rep was not really useful, in which the gut decision to follow
the investments of our rich neighbor was not really in our interest, or in which
spending endless hours on the Internet led to confusion rather than to quick
and good decisions. To sum up, good advice is difficult to receive, is in most
cases time-consuming or costly, and even then is often of questionable quality.
Wouldn’t it be great to have an affordable personal advisor who helps us
make good decisions efficiently?
The construction of systems that support users in their (online) decision
making is the main goal of the field of recommender systems. In particular,
the goal of recommender systems is to provide easily accessible, high-quality
recommendations for a large user community.
This focus on volume and easy accessibility makes the technology very
powerful. Although recommender systems aim at the individual decisions of
users, these systems have a significant impact in a larger sense because of their

xiii
xiv Preface

mass application – as, for instance, Amazon.com’s recommendation engines.

Because of the far reach of the Internet market, this issue must not be under-
estimated, as the control of recommender systems allows markets themselves
to be controlled in a broader sense. Consider, for example, a department store
in which all the sales clerks follow orders to push only certain products.
One can argue that recommender systems are for the masses who cannot
afford or are not willing to pay for high-quality advice provided by experts.
This is partially true in some domains, such as financial services or medicine;
however, the goal of making good decisions includes the aim of outperforming
domain experts. Although this is clearly not possible and also not necessary in
all domains, there are many cases in which the wisdom of the crowds can be ex-
ploited to improve decisions. Thus, given the huge information bases available
on the Internet, can we develop systems that provide better recommendations
than humans?
The challenge of providing affordable, personal, and high-quality recom-
mendations is central to the field and generates many interesting follow-up
goals on both a technical and a psychological level. Although, on the technical
level, we are concerned with finding methods that exploit the available infor-
mation and knowledge as effectively and efficiently as possible, psychological
factors must be considered when designing the end-user interaction processes.
The design of these communication processes greatly influences the trust in
the subsequent recommendations and ultimately in the decisions themselves.
Users rarely act as rational agents who know exactly what they want. Even the
way a recommender agent asks for a customer’s preferences or which decision
options are presented will affect a customer’s choice. Therefore, recommender
systems cannot be reduced to simple decision theoretical concepts.
More than fifteen years have passed since the software systems that are now
called “recommender systems” were first developed. Since then, researchers
have continuously developed new approaches for implementing recommender
systems, and today most of us are used to being supported by recommendation
services such as the one found on Amazon.com. Historically, recommender
systems have gained much attention by applying methods from artificial intel-
ligence to information filtering – that is, to recommend web sites or to filter
and rank news items. In fact, recommendation methods such as case-based
or rule-based techniques have their roots in the expert systems of the 1980s.
However, the application areas of recommender systems go far beyond pure
information filtering methods, and nowadays recommendation technology is
providing solutions in domains as diverse as financial products, real estate,
electronic consumer products, movies, books, music, news, and web sites, just
to name a few.
 Preface xv

This book provides an introduction to the broad field of recommender sys-

tems technology, as well as an overview of recent improvements. It is aimed at
both graduate students or new PhDs who are starting their own research in the
field and practitioners and IT experts who are looking for a starting point for
the design and implementation of real-world recommender applications. Addi-
tional advanced material can be found, for instance, in Recommender Systems
Handbook (Ricci et al. 2010), which contains a comprehensive collection of
contributions from leading researchers in the field.
This book is organized into two parts. In the first part, we start by summariz-
ing the basic approaches to implementing recommender systems and discuss
their individual advantages and shortcomings. In addition to describing how
such systems are built, we focus on methods for evaluating the accuracy of
recommenders and examining their effect on the behavior of online customers.
The second part of the book focuses on recent developments and covers issues
such as trust in recommender systems and emerging applications based on Web
2.0 and Semantic Web technologies. Teaching material to accompany the topics
presented in this book is provided at the site http://www.recommenderbook.net/.
We would like to thank everyone who contributed to this book, in partic-
ular, Heather Bergman and Lauren Cowles from Cambridge University Press,
who supported us throughout the editorial process. Particular thanks also go
to Arthur Pitman, Kostyantyn Shchekotykhin, Carla Delgado-Battenfeld, and
Fatih Gedikli for their great help in proofreading the manuscript, as well as
to several scholar colleagues for their effort in reviewing and giving helpful
feedback.

Dietmar Jannach
Markus Zanker
Alexander Felfernig
Gerhard Friedrich
Dortmund, Klagenfurt, and Graz, 2010
 1
Introduction

Most Internet users have come across a recommender system in one way or
another. Imagine, for instance, that a friend recommended that you read a new
book and that you subsequently visit your favorite online bookstore. After
typing in the title of the book, it appears as just one of the results listed. In one
area of the web page possibly called “Customers Who Bought This Item Also
Bought,” a list is shown of additional books that are supposedly of interest to
you. If you are a regular user of the same online bookstore, such a personalized
list of recommendations will appear automatically as soon as you enter the
store. The software system that determines which books should be shown to a
particular visitor is a recommender system.
The online bookstore scenario is useful for discussing several aspects of
such software systems. First, notice that we are talking about personalized
recommendations – in other words, every visitor sees a different list depending
on his or her tastes. In contrast, many other online shops or news portals
may simply inform you of their top-selling items or their most read articles.
Theoretically, we could interpret this information as a sort of impersonal buying
or reading recommendation as well and, in fact, very popular books will suit
the interests and preferences of many users. Still, there will be also many
people who do not like to read Harry Potter despite its strong sales in 2007 –
in other words, for these people, recommending top-selling items is not very
helpful. In this book, we will focus on systems that generate personalized
recommendations.
The provision of personalized recommendations, however, requires that the
system knows something about every user. Every recommender system must
develop and maintain a user model or user profile that, for example, contains the
user’s preferences. In our bookstore example, the system could, for instance,
remember which books a visitor has viewed or bought in the past to predict
which other books might be of interest.

1
2 1 Introduction

Although the existence of a user model is central to every recommender

system, the way in which this information is acquired and exploited depends on
the particular recommendation technique. User preferences can, for instance, be
acquired implicitly by monitoring user behavior, but the recommender system
might also explicitly ask the visitor about his or her preferences.
The other question in this context is what kind of additional information the
system should exploit when it generates a list of personalized recommendations.
The most prominent approach, which is actually used by many real online
bookstores, is to take the behavior, opinions, and tastes of a large community
of other users into account. These systems are often referred to as community-
based or collaborative approaches.
This textbook is structured into two parts, reflecting the dynamic nature
of the research field. Part I summarizes the well-developed aspects of recom-
mendation systems research that have been widely accepted for several years.
Therefore, Part I is structured in a canonical manner and introduces the ba-
sic paradigms of collaborative (Chapter 2), content-based (Chapter 3), and
knowledge-based recommendation (Chapter 4), as well as hybridization meth-
ods (Chapter 5). Explaining the reasons for recommending an item (Chapter 6)
as well as evaluating the quality of recommendation systems (Chapter 7) are
also fundamental chapters. The first part concludes with an experimental eval-
uation (Chapter 8) that compares different recommendation algorithms in a
mobile environment that can serve as a practical reference for further inves-
tigations. In contrast, Part II discusses very recent research topics within the
field, such as how to cope with efforts to attack and manipulate a recommender
system from outside (Chapter 9), supporting consumer decision making and
potential persuasion strategies (Chapter 10), recommendation systems in the
context of the social and semantic webs (Chapter 11), and the application
of recommender systems to ubiquitous domains (Chapter 12). Consequently,
chapters of the second part should be seen as a reference point for ongoing
research.

1.1 Part I: Introduction to basic concepts

1.1.1 Collaborative recommendation
The basic idea of these systems is that if users shared the same interests in the
past – if they viewed or bought the same books, for instance – they will also
have similar tastes in the future. So, if, for example, user A and user B have a
purchase history that overlaps strongly and user A has recently bought a book
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