On the Internet, where the number of choices is overwhelming, there is need to filter, prioritize and efficiently deliver relevant information in order to alleviate the problem of information overload, which has created a potential problem to many Internet users. Recommender systems solve this problem by searching through large volume of dynamically generated information to provide users with personalized content and services. This paper explores the different characteristics and potentials of different prediction techniques in recommendation systems in order to serve as a compass for research and practice in the field of recommendation systems.