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Image Credit: Arxiv

Scalable and Interpretable Contextual Bandits: A Literature Review and Retail Offer Prototype

  • This paper provides a review of Contextual Multi-Armed Bandit (CMAB) methods and introduces an experimental framework for scalable and interpretable offer selection in retail.
  • The framework models context at the product category level, allowing offers to span multiple categories, enhancing learning efficiency in dynamic environments.
  • It extends CMAB methodology to support multi-category contexts and achieves scalability through efficient feature engineering and modular design.
  • The prototype offers interpretability at scale through logistic regression models and a large language model interface for real-time tracking and explanation of evolving preferences.

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