Comment by hruk

Comment by hruk 5 days ago

6 replies

I don't know, all of these are pretty surmountable. We've done dynamic pricing with contextual multi-armed bandits, in which each context gets a single decision per time block and gross profit is summed up at the end of each block and used to reward the agent.

That being said, I agree that MABs are poor for experimentation (they produce biased estimates that depend on somewhat hard-to-quantify properties of your policy). But they're not for experimentation! They're for optimizing a target metric.

empiko 5 days ago

Surmountable, yes, but in practice it is often just too much hassle. If you are doing tons of these tests you can probably afford to invest in the infrastructure for this, but otherwise AB is just so much easier to deploy that it does not really matter to you that you will have a slightly ineffective algo out there for a few days. The interpretation of the results is also easier as you don't have to worry about time sensitivity of the collected data.

hinkley 5 days ago

You do know Amazon got sued and lost for showing different prices to different users? That kind of price discrimination is illegal in the US. Related to actual discrimination.

I think Uber gets away with it because it’s time and location based, not person based. Of course if someone starts pointing out that segregation by neighborhoods is still a thing, they might lose their shiny toys.

taion 4 days ago

You can do that, but now you have a runtime dependency on your analytics system, right? This can be reasonable for a one-off experimentation system but it's not likely you'll be able to do all of your experimentation this way.

  • hruk 4 days ago

    No, you definitely have to pick your battles. Something that you want to continuously optimize over time makes a lot more sense than something where it's reasonable to test and the commit to a path forever.

jacob019 5 days ago

Hey, I'd love to hear more about dynamic pricing with contextual multi-armed bandits. If you're willing to share your experience, you can find my email on my profile.