PANAJI
The Goa Institute of Management (GIM) has created a new two-step algorithm to make digital marketplaces more transparent for both sellers and buyers.
Published in the journal ‘Computational Management Science’, the study looks at the growing problems of biased algorithms and collusive behaviour on digital platforms and suggests possible solutions.
The key features of the algorithm include: combining review reliability and price efficiency to give fair visibility to products; better performance in tests compared to models that use only quality or price; following rules on transparency and equal market access; building customer trust, lowering the cost of attracting sellers, and improving long-term profits.
“Most digital marketplaces today use ranking systems that focus mainly on earning more revenue. This causes problems like fake reviews, platforms giving their own products more visibility, and unclear search results. Because of this, honest sellers struggle to be seen, competition is affected, and buyers get misled,” said Assistant Professor Dipankar Das.
He explained that the new algorithm aims to make product rankings fairer by using only verified reviews and competitive pricing.
“By taking into account how sellers and platforms compete, the algorithm helps stop unfair ranking practices, ensures equal access for sellers, and improves transparency,” he said.
He added that the algorithm also fits well with new antitrust laws around the world and has shown, through tests, that it can resist collusion and improve transparency.
