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In: Economics

Does Target use any collaborative filtering? Please explain.

Does Target use any collaborative filtering? Please explain.

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Expert Solution

A recommender system refers to a system that is capable of predicting the future preference of a set of items for a user, and recommend the top items. One key reason why we need a recommender system in modern society is that people have too much options to use from due to the prevalence of Internet. In the past, people used to shop in a physical store, in which the items available are limited. For instance, the number of movies that can be placed in a Blockbuster store depends on the size of that store. By contrast, nowadays, the Internet allows people to access abundant resources online. Netflix, for example, has an enormous collection of movies. Although the amount of available information increased, a new problem arose as people had a hard time selecting the items they actually want to see. This is where the recommender system comes in. This article will give you a brief introduction to two typical ways for building a recommender system, Collaborative Filtering and Singular Value Decomposition.

Collaborative Filtering

As mentioned above, Collaborative Filtering (CF) is a mean of recommendation based on users’ past behavior. There are two categories of CF:

User-based: measure the similarity between target users and other users

Item-based: measure the similarity between the items that target users rates/ interacts with and other items

The key idea behind CF is that similar users share the same interest and that similar items are liked by a user.

Assume there are m users and n items, we use a matrix with size m*n to denote the past behavior of users. Each cell in the matrix represents the associated opinion that a user holds. For instance, M_{i, j} denotes how user i likes item j. Such matrix is called utility matrix. CF is like filling the blank (cell) in the utility matrix that a user has not seen/rated before based on the similarity between users or items. There are two types of opinions, explicit opinion and implicit opinion. The former one directly shows how a user rates that item (think of it as rating an app or a movie), while the latter one only serves as a proxy which provides us heuristics about how an user likes an item (e.g. number of likes, clicks, visits). Explicit opinion is more straight-forward than the implicit one as we do not need to guess what does that number implies. For instance, there can be a song that user likes very much, but he listens to it only once because he was busy while he was listening to it. Without explicit opinion, we cannot be sure whether the user dislikes that item or not. However, most of the feedback that we collect from users are implicit. Thus, handling implicit feedback properly is very important, but that is out of the scope of this blog post. I’ll move on and discuss how CF works.

User-based Collaborative Filtering

We know that we need to compute the similarity between users in user-based CF. But how do we measure the similarity? There are two options, Pearson Correlation or cosine similarity. Let u_{i, k} denotes the similarity between user i and user k and v_{i, j} denotes the rating that user i gives to item j with v_{i, j} = ? if the user has not rated that item. These two methods can be expressed as the followings:

Both measures are commonly used. The difference is that Pearson Correlation is invariant to adding a constant to all elements.

Now, we can predict the users’ opinion on the unrated items with the below equation:

Let me illustrate it with a concrete example. In the following matrixes, each row represents a user, while the columns correspond to different movies except the last one which records the similarity between that user and the target user. Each cell represents the rating that the user gives to that movie. Assume user E is the target.

Singular Value Decomposition One way to handle the scalability and sparsity issue created by CF is to leverage a latent factor model to capture the similarity between users and items. Essentially, we want to turn the recommendation problem into an optimization problem. We can view it as how good we are in predicting the rating for items given a user. One common metric is Root Mean Square Error (RMSE). The lower the RMSE, the better the performance. Since we do not know the rating for the unseen items, we will temporarily ignore them. Namely, we are only minimizing RMSE on the known entries in the utility matrix. To achieve minimal RMSE, Singular Value Decomposition (SVD) is adopted as shown in the below formula.


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