Sarcasm is a sophisticated form of speech act widely used in online communities. Automatic recognition of sarcasm is, however, a novel task. Sarcasm recognition could contribute to the performance of review summarization and ranking systems. This paper presents SASI, a novel Semi-supervised Algorithm for Sarcasm Identification that recognizes sarcastic sentences in product reviews. SASI has two stages: semi-supervised pattern acquisition, and sarcasm classification. We experimented on a data set of about 66000 Amazon reviews for various books and products. Using a gold standard in which each sentence was tagged by 3 annotators, we obtained precision of 77% and recall of 83.1% for identifying sarcastic sentences. We found some strong features that characterize sarcastic utterances. However, a combination of more subtle pattern-based features proved more promising in identifying the various facets of sarcasm. We also speculate on the motivation for using sarcasm in online communities and social networks.