An End-To-End, Stage-Wise Life-Cycle Framework for Mitigating Algorithmic Bias in Two-Sided Marketplaces.

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Authors: Nihar Vipulkumar Patel
Cited by: 0

Abstract

Two-sided marketplaces connect buyers and sellers by deciding who sees what, howthings are priced, and how feedback affects future visibility. Those feedback loops cansnowball: small early advantages like belonging to a well-represented group lead tomore views, faster ratings, and better liquidity, which in turn win even more exposure.Meanwhile, newcomers or minority groups can lag despite offering similar quality. Overtime, these outcomes can feel unfair, chip away at user trust, and harm the platform’slong-term health. This paper lays out a practical, end-to-end approach to reducealgorithmic bias across the marketplace’s entire lifecycle from how data is collected tohow the system is monitored and governed. It treats “exposure” (who gets seen) and“opportunity” (who gets a real shot) as core resources, and sets goals that account fordifferent user segments and calibration needs. The approach maps concrete actionsacross eight stages: measuring disparities; curating datasets; learning fairrepresentations; training with constraints; ranking and allocating with fairness -awareexploration; shaping feedback signals; evaluating with counterfactual methods; andgoverning after launch. Crucially, bias is framed as a system -level, dynamic effect. It isnot merely a flaw in a single model. Fairness constraints are applied to exposure flows,not only to predictions. Counterfactual simulations estimate long-term marketplaceeffects, and “pacers” limit how fast policies change so the user experience stays stable.The paper also shows how to connect offline guarantees with online tests, usingtechniques like propensity-scored log replay, interleaving experiments with exposurebudgets, and drift alerts for segment-level calibration. The outcome is an architecturethat spreads responsibility across teams and components, helping platforms reduce realdisparities and perceived unfairness without tanking efficiency. It closes with guidanceon choosing fairness trade-offs, keeping operational runbooks current, and definingleading indicators that tie short-term metrics to long-term trust.

Fields of Study & Subjects

Ethics and Social Impacts of AI Digital Platforms and Economics Recommender Systems and Techniques

Publication details

Journal / source
Power System Technology
Publication date
20 January 2026