Enhancing Marketplace Fairness with New Algorithm

The Goa Institute of Management has developed a two-stage competitive assortment algorithm, aiming to enhance fairness and transparency in digital marketplaces. By focusing on review credibility and competitive pricing, the algorithm addresses collusion, platform biases, and promotes trust, aligning with global antitrust regulations and improving market access for genuine sellers.

Researchers at the Goa Institute of Management (GIM) have crafted a groundbreaking algorithm designed to infuse fairness into digital marketplaces. Newly published in 'Computational Management Science', the research addresses biases, including manipulated reviews and platform favoritism, that often plague online shopping ecosystems.

The algorithm, according to Assistant Professor Dipankar Das, integrates competitive dynamics between vendors and platforms, paving the way for more equitable product rankings. It comprises key features like fair product visibility by aligning review credibility with price efficiency, demonstrating superior profitability compared to traditional models.

With mounting antitrust regulations globally, this innovation arrives as a crucial tool for digital e-commerce search engines. It promotes transparency and reduces collusion by filtering rankings through substantive review standards, potentially reshaping platform architecture towards a fairer balance between profitability and equality.

(With inputs from agencies.)