Recommender systems help users find items of interest by tailoring their recommendations to users' personal preferences. The utility of an item for a user, however, may vary greatly depending on that user's specific situation or the context in which the item is used. Without considering these changes in preferences, the recommendations may match the general preferences of a user, but they may have small value for the user in his/her current situation. In this paper, we introduce a hierarchical hidden Markov model for capturing changes in user's preferences. Using a user's feedback sequence on items, we model the user as a hierarchical hidden Markov process and the current context of the user as a hidden variable in this model. For a given user, our model is used to infer the maximum likelihood sequence of transitions between contextual states and to predict the probability distribution for the context of the next action. The predicted context is then used to generate recommendations. Our evaluation results using Last.fm music playlist data, indicate that this approach achieves significantly better performance in terms of accuracy and diversity compared to baseline methods.
