Other applications of multi-armed and contextual bandits
So far, we have focused on online advertising example as our running example. If you are wondering how commonly bandit algorithms are used in practice for such problems, it is actually quite common. For example, Microsoft has a service, called Personalizer, based on bandit algorithms (disclaimer: the author is a Microsoft employee at the time of writing this book). The example here itself is inspired by the work at Hubspot – a marketing solutions company (Collier & Llorens, 2018). Moreover, bandit problems have a vast array of practical applications other than advertising. In this section we briefly go over some of those applications.
Recommender systems
The bandit problems we formulated and solved in this chapter are a type of recommender system: they recommend which ad to display, potentially leveraging the information available about the users. There are many other recommender systems that use bandits in a...