A Behavioral Model for Exploration vs. Exploitation: Theoretical Framework and Experimental Evidence

Fuente: arXiv
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Main Authors: Ding, Jingying, Feng, Yifan, Rong, Ying
Format: Preprint
Published: 2022
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author Ding, Jingying
Feng, Yifan
Rong, Ying
author_facet Ding, Jingying
Feng, Yifan
Rong, Ying
contents How do people navigate the exploration-exploitation (EE) trade-off when making repeated choices with unknown rewards? We study this question through the lens of multi-armed bandit problems and introduce a novel behavioral model, Quantal Choice with Adaptive Reduction of Exploration (QCARE). It generalizes Thompson Sampling, allowing for a principled way to quantify the EE trade-off and reflect human decision-making patterns. The model adaptively reduces exploration as information accumulates, with the reduction rate serving as a parameter to quantify the EE trade-off dynamics. We theoretically analyze how varying reduction rates influence decision quality, shedding light on the effects of ``over-exploration'' and ``under-exploration.'' Empirically, we validate QCARE through experiments collecting behavioral data from human participants. QCARE not only captures critical behavioral patterns in the EE trade-off but also outperforms alternative models in predictive power. Our analysis reveals a behavioral tendency toward over-exploration.
format Preprint
id arxiv_https___arxiv_org_abs_2207_01028
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle A Behavioral Model for Exploration vs. Exploitation: Theoretical Framework and Experimental Evidence
Ding, Jingying
Feng, Yifan
Rong, Ying
Optimization and Control
How do people navigate the exploration-exploitation (EE) trade-off when making repeated choices with unknown rewards? We study this question through the lens of multi-armed bandit problems and introduce a novel behavioral model, Quantal Choice with Adaptive Reduction of Exploration (QCARE). It generalizes Thompson Sampling, allowing for a principled way to quantify the EE trade-off and reflect human decision-making patterns. The model adaptively reduces exploration as information accumulates, with the reduction rate serving as a parameter to quantify the EE trade-off dynamics. We theoretically analyze how varying reduction rates influence decision quality, shedding light on the effects of ``over-exploration'' and ``under-exploration.'' Empirically, we validate QCARE through experiments collecting behavioral data from human participants. QCARE not only captures critical behavioral patterns in the EE trade-off but also outperforms alternative models in predictive power. Our analysis reveals a behavioral tendency toward over-exploration.
title A Behavioral Model for Exploration vs. Exploitation: Theoretical Framework and Experimental Evidence
topic Optimization and Control
url https://arxiv.org/abs/2207.01028