Abstract: This paper presents a statistical approach to collaborative filtering and investigates the use of latent class models for predicting individual choices and preferences based on observed preference behavior. Two models are discussed and compared: the aspect model, a probabilistic latent space model which models individual preferences as a convex combination of preference factors, and the two-sided clustering model, which simultaneously partitions persons and objects into clusters. We present EM algorithms for different variants of the aspect model and derive an approximate EM algorithm based on a variational principle for the two-sided clustering model. The benefits of the different models are experimentally investigated on a large movie data set.
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