A New Measure of Complementarity in Market Basket Data

Abstract

Modern IT systems collect detailed data on each activity, transaction, forum entry, conversation and many other areas. The availability of large data volumes in the business, industry and research fields opens up new opportunities for the empirical verification of various economic theories and laws. The analysis of big datasets in turn allows us to look at many issues from a new point of view and see the dependencies that are otherwise difficult to derive. In this paper, we propose a new measure for dependencies between goods in market basket data. The introduced measure was inspired by the well-known microeconomic concept of complementarity. Due to its similar properties to those of complementarity, the new measure was called basket complementarity (b-complementarity). B-complementarity not only measures the strength of dependencies between goods but also measures the direction of these dependencies. The values of the proposed measure can be relatively easily calculated using market basket data. This paper also presents a simple example illustrating this new concept, areas of possible application (e.g., in e-commerce) and preliminary results of searching for goods that meet the criteria of basket complementarity in real market basket data.

Keywords

• big data analysis
• market basket analysis
• basket complementarity
• complementary goods
• association analysis