Anisio Lacerda
Transcription
Anisio Lacerda
Improving Daily Deals Recommendation Using Explore-Then-Exploit Strategies Anisio Lacerda 1 Origins of the Material • Lacerda, A.,Veloso, A., Ziviani, N. (2013). Exploratory and interactive daily deals recommendation. ACM Recommender Systems Conference • Lacerda, A., Santos, R.L.T.,Veloso, A., Ziviani, N. (2015). Improving daily deals recommendations using explore-thenexploit strategies. Information Retrieval Journal 2 Daily-Deals Sites (DDSs) Daily-Deal Site (mediator) Merchant Customer (seller) (buyer) 3 Daily-Deals Sites (DDSs) Comissions to DDSs Daily-Deal Site (mediator) Merchant Customer (seller) (buyer) 4 Deal recommendation task Email (communication channel) Customer Database Feedback? What? Selected Customers • • What should we offer to customers? How can we use feedback to improve the quality of subsequent recommendations? 5 Challenges • • • Deals have a short life period Catalog is dynamic Most customers are sporadic bargain hunters • • Past preference data is extremly sparse Customer taste may undergo temporal drifts 6 Catalog dynamicity • • ~30% of new deals on average (per day) Maximum lifetime of 4-5 days 7 Deal recommendation: Method • Idea: get customer feedback on active catalog as soon as possible • • Pure exploration (get feedback) Pure exploitation (use feedback) • • epsilon-first strategy [Tran-Thanh et al. 2010] Co-purchase network: Customer Common purchase 8 Deal recommendation: Explore-then-exploit (one day) Exploration Exploration Co-purchase Network Building Co-Purchase Network Sorting Sorting Criterion Splitting Splitting Strategy Recommendation Randomize Algorithm Exploitation Feedback-based Re-ranking Recommendation Recommender Algorithm Exploitation 9 Deal recommendation: Explore-then-exploit (one day) Exploration Exploration Co-purchase Network Building Co-Purchase Network Sorting Sorting Criterion Splitting Splitting Strategy Recommendation Randomize Algorithm Exploitation Feedback-based Re-ranking Recommendation Recommender Algorithm Exploitation 10 Sorting criteria • Explores customers that: • • • are likely to provide feedback are close to the largest number of customers in the co-purchased network Exploits the gathered information: • with customers that are likely to benefit from such information 11 Sorting criteria • Complex network metrics A. Degree B. PageRank C. Betweenness D. Eigenvector E. Clustering coefficient 12 Deal recommendation: Explore-then-exploit (per day) Exploration Exploration Co-purchase Network Building Co-Purchase Network Sorting Sorting Criterion Splitting Splitting Strategy Recommendation Randomize Algorithm Exploitation Feedback-based Re-ranking Recommendation Recommender Algorithm Exploitation 13 Splitting strategy Splitting customers into two distinct sets: a. from whom we will obtain feedback b. for whom we will use gathered feedback to improve recommendations 14 Splitting strategy • • Full Explore (FE): follow the order imposed by corresponding metric k-Way Merge (KWM): alternate central customers into exploration and exploitation to avoid redundant feedback Exploration Exploration Co-purchase Network Building Co-Purchase Network Sorting Sorting Criterion Splitting Splitting Strategy Recommendation Randomize Algorithm Exploitation Feedback-based Re-ranking Recommendation Recommender Algorithm Exploitation 15 Splitting strategy • • Full Explore (FE): follow the order imposed by corresponding metric k-Way Merge (KWM): alternate central customers into exploration and exploitation to avoid redundant feedback C D B E Degree A (3) B (3) C (1) D (1) E (1) F (1) F (a) (b) Full Explore A B C D E F (c) Chunks A B C D E F K-Way Merge A C E B D F (d) 16 Deal recommendation: Explore-then-exploit (per day) Exploration Exploration Co-purchase Network Building Co-Purchase Network Sorting Sorting Criterion Splitting Splitting Strategy Recommendation Randomize Algorithm Exploitation Feedback-based Re-ranking Recommendation Recommender Algorithm Exploitation 17 Deals recommendation • • Exploration • Send randomized recommendations to customers • Update co-purchased network Exploitation • Re-ranking of deals recommendations given by baseline recommenders 18 Experimental setup • • • Metric: MAP Peixe Urbano dataset (2-months) Baselines • • • Most Popular WRMF [Hu et al. 2008] CLiMF [Shi et al. 2012] 19 Related work • WRMF [Hu et al. 2008] • • • Collaborative-filtering Implicit feedback CLiMF [Shi et al. 2012] • • • Collaborative-filtering Implicit feedback Minimize Mean Reciprocal Rank (MRR) 20 Existing RecSys • RQ1: How do existing recommendation algorithms perform in a DDS scenario? epsilon Most Popular WRMF CLiMF Baseline (0.0) 0.01 0.05 0.10 0.20 0.30 0.40 0.50 0.90 0.199 0.214 0.224 0.240 0.258 0.264 0.255 0.252 0.207 0.185 0.199 0.212 0.231 0.245 0.249 0.242 0.240 0.188 0.169 0.184 0.196 0.220 0.239 0.240 0.233 0.227 0.179 21 Explore-then-exploit • RQ2: Can we improve the performance of existing recommendation algorithms using our explore-then-exploit approach? epsilon Most Popular WRMF CLiMF Baseline (0.0) 0.01 0.05 0.10 0.20 0.30 0.40 0.50 0.90 0.199 0.214 0.224 0.240 0.258 0.264 0.255 0.252 0.207 0.185 0.199 0.212 0.231 0.245 0.249 0.242 0.240 0.188 0.169 0.184 0.196 0.220 0.239 0.240 0.233 0.227 0.179 MAP values - Betweeness 22 Explore-then-exploit • RQ3: What is the impact of our proposed k-Way Merge splitting strategy? epsilon FE KWM Gain (%) Baseline (0.0) 0.01 0.05 0.10 0.20 0.30 0.40 0.50 0.90 0.199 0.201 0.202 0.206 0.213 0.224 0.231 0.228 0.204 0.199 0.211 0.225 0.241 0.258 0.250 0.249 0.247 0.208 5.1 11.6 16.9 21.0 11.3 7.9 8.1 1.9 MAP values - Most Popular+Degree 23 Explore-then-exploit • RQ3: What is the impact of our proposed k-Way Merge splitting strategy? epsilon FE KWM Gain (%) Baseline (0.0) 0.01 0.05 0.10 0.20 0.30 0.40 0.50 0.90 0.199 0.201 0.202 0.206 0.213 0.224 0.231 0.228 0.204 0.199 0.211 0.225 0.241 0.258 0.250 0.249 0.247 0.208 5.1 11.6 16.9 21.0 11.3 7.9 8.1 1.9 MAP values - Most Popular+Degree 24 Findings • Collaborative-filtering algorithms are not better than the naive strategy of suggesting nonpersonalized deals (MP) • We show that alternating central customers into exploration and exploitation is better than fully exploring or exploiting central customers • The proposed exploration-then-exploitation method is very effective and well-suited to DDS recommendation scenario 25 @CMU • Paper-reviewer assignment • RecSys 26 Improving Daily Deals Recommendation Using Explore-Then-Exploit Strategies Anisio Lacerda 27 Explore-then-exploit approach • Actions are costly • • Constrained by a fixed budget (per day) • • • each email can affect brand’s reputability number of events == number of users duration of the problem is finite The ideal exploitation is not obtained by pulling the optimal arm repeatedly, but by combinations of arms that maximize the reward within the budget 28 Explore-then-exploit approach • - first strategy: common within this scenario • percentage of the budget is used to learn arm’s rewards (exploration) • percentage of the budget is used for exploitation 29 DDS tasks Deal Email Selection Prioritization Email Content Available Deals Customer History Deal Size? Catalog Revenue Maximization Customer History Who? Selected Customers Feedback? What? Selected Customers Customer Satisfaction 30 Deal size prediction Deal Email Selection Prioritization Email Content Available Deals Customer History Deal Size? Catalog Revenue Maximization Customer History Who? Selected Customers Feedback? What? Selected Customers Customer Satisfaction 31 Deal size prediction • Predict how many coupons will be sold 32 Tackling catalog volatility Name Manhattan Kayak Title Up to 51% Off ... Highlight Kayakers and standup paddleboarders tour the Hudson River ... Description Kayakers, unlike pancakes or depressed turtles, muster the will to get ... 33 Catalog interaction 34 Related Work • Global Predictor (GLPR) [Byers et al. 2012] • • • Non-textual features No market information One Predictor per Market (OPBM) [Lappas and Terzi 2012] • • Description • No market interaction Latent Dirichlet Allocation (LDA) + Hierarchical Clustering 35 Deal size prediction: Method 1. Textual features extraction 2. Market clustering 3. Market prediction learning 4. Expectation Maximization prediction learning 36 Deal size prediction: Terms extraction • Field-based term extraction 37 Deal representation • Fields 1. Name 2. Title 3. Highlight 4. Description 5. BoW (1,2,3,4) • Term weights • TF, TF*IFF, TS, TS*IFF, where: • Term Frequenty (TF) • Term Spread (TS) • Inverse Feature Frequency (IFF) 6. Concatenation (1,2,3,4) 38 Deal size prediction: Market clustering • Latent Dirichlet Allocation (LDA) • latent topics = markets 39 Identifying markets “Gym” “Hair Salon” “Sports” class salon camping fit hair week body look sport train services day 40 Deal size prediction: Market predictors • Support Vector Regressor 41 Deal size prediction: Predictor • Expectation-Maximization Market interaction 42 Deal size EM predictor Expectation unknown parameter: representativeness of each market Maximization • RMSE as loss function 43 Experimental setup • • Interleaved Test-then-train [Bifet et al. 2010] Datasets • • • • Groupon (English) LivingSocial (English) Baselines • • • Peixe Urbano (Portuguese) GPBM (Single market) OPBM (Multiple markets) RMSE 44 Overall effectiveness • RQ1: What is the effectiveness of our method? RMSE Ours GLPR Gain OPBM Gain Groupon 1.13 1.37 17.6 1.35 16.3 LivingSocial 1.02 1.12 9.60 1.11 8.1 Peixe Urbano 1.14 1.29 11.7 1.25 9.1 45 Weighting schemes and deal representation • • RQ2: What is the impact of different weighting schemes and deal representation? Groupon and 50 markets RMSE Name Title Highlight Description BoW Concat. TS 1.173 1.152 1.201 1.167 1.148 1.422 TSxIFF 1.211 1.227 1.226 1.295 1.353 1.214 1.190 1.146 1.217 1.157 1.162 1.133 TFxIFF 1.198 1.216 1.236 1.458 1.461 1.213 TF 46 Market-aware predictors • • RQ3: Is market clustering effective? Difference between a single market predictor and per-market predictor Groupon Living Social 47 Number of markets • RQ4: What is the impact of number of markets? RMSE # markets 5 10 20 30 40 50 100 Groupon LivingSocial 1.366 1.295 1.255 1.192 1.196 1.133 1.182 1.128 1.119 1.094 1.020 1.086 1.137 1.093 Peixe Urbano 1.317 1.244 1.151 1.143 1.167 1.149 1.184 48 Findings • Taking into account deals interaction and structure improve deal size prediction • Gains range from 8% to 17% 49 Email prioritization problem Deal Email Selection Prioritization Email Content Available Deals Customer History Deal Size? Catalog Revenue Maximization Customer History Who? Selected Customers Feedback? What? Selected Customers Customer Satisfaction 50 Email prioritization 40% 28.1 30% 21.1 20% 10% 0% • Abuse/Unsubscribe Open Click 0.14 3.01 Daily Deals 0.29 4.01 [Mailchimp] Average Lower open and click rates for DDSs • Large number of unnecessary emails sent • Optimize number of emails sent to customers 51 1= 2 Email prioritization Recommender u3 u4 u1 u2 u5 Customers email Catalog Deals 52 MAB: Advantages • Usage data rather than manually labeled relevance judgments • • • Larger quantity Lower cost Online learning approach: • As training data is being collected, it immediatly impacts effectiveness 53 Sorting criteria (Arms) # Criteria C1 C2 C3 C4 C5 C6 C7 Number of purchases already performed Days since the last purchase Savings Average price Average discount percentage Discount percentage Recommender confidence 54 MAB algorithms • epsilon-greedy: at time t epsilon 1-epsilon • . . . N criteria (Exploitation) Best criterion UCB1-Normal: at time t • upper confidence bound (Exploration) ucb1 . . . ucb2 N criteria ucbN 55 Experimental setup • • • Interleaved Test-then-train [Bifet et al. 2010] Dataset: Peixe urbano (2 months) Baselines: • • Random criterion selection Reward • 1 / (# purchases current testing day) 56 Criterion usage • RQ1: What is the fraction of times a specific criterion was chosen? 57 Cumulative reward 10% of emails sent 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 (0.10) (0.50) (0.90) UCB Random 1 5 10 Cumulative Reward Cumulative Reward RQ2: What is the performance of MAB algorithms over time? 15 20 30-Day Period 25 30 50% of emails sent 20 18 16 14 12 10 8 6 4 2 0 (0.10) (0.50) (0.90) UCB Random 1 5 10 15 20 25 30 30-Day Period 58 Cumulative reward RQ3: What is the trade-off between the cumulative reward and the number of emails sent? Cumulative Reward 30 Upper Bound ✏ = 0.1 UCB ✏ = 0.5 ✏ = 0.9 Random 25 20 15 10 5 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Fraction of e-mails sent 0.8 0.9 1.0 59 Findings • We reach a 10% reduction in terms of the number of emails sent without affecting reward • We are able to avoid sending about 30-40% of the emails, if a reduction in terms of reward is allowed 60 Future Work • Are non-textual features effective for market identification? • Can learning to rank algorithms provide a better way to sort customers? • Can we combine email prioritization and deal recommendation solutions to select customers and improve recommendation effectiveness? 61 Catalog interaction Eye exam Restaurants Eyewear 62 Deal size EM predictor Expectation unknown parameter: representativeness of each market deal size Maximization • RMSE as loss function 63 Number of markets • RQ4: What is the impact of number of markets? RMSE # markets 5 10 20 30 40 50 100 Groupon LivingSocial 1.366 1.295 1.255 1.192 1.196 1.133 1.182 1.128 1.119 1.094 1.020 1.086 1.137 1.093 Peixe Urbano 1.317 1.244 1.151 1.143 1.167 1.149 1.184 64 1= 2 Email prioritization Recommender u3 Fraction of u4 sent emails u1 u2 20% u5 C1 Customers email Catalog Deals 65 1= 2 Email prioritization Recommender u3 Fraction of u4 sent emails u1 u2 20% u5 C1 u5 u1 u2 u3 u4 C2 Customers email Catalog Deals 66 1= 2 Email prioritization MAB Algorithm Recommender u3 Fraction of u4 sent emails u1 u2 20% u5 C1 u5 u1 u2 u3 u4 C2 Customers email Catalog Deals 67 1= 2 Email prioritization Reward MAB Algorithm t1 = C2 = u5 u3 Fraction of u4 sent emails u1 u2 20% u5 C1 u5 u1 u2 u3 u4 C2 Customers Recommender email Catalog Deals 68 1= 2 Email prioritization Reward MAB Algorithm t1 = C2 = u5 t2 = C1 = u3 u3 Fraction of u4 sent emails u1 u2 20% u5 C1 u5 u1 u2 u3 u4 C2 Customers Recommender email Catalog Deals 69 Contributions • The exploitation of Markets for tackling deal interaction • • A new method for Deal Size Prediction • • A new method for Prioritizing Emails • • A new method for Deal Recommendation Criteria to sort customers according to their probability of email click The exploitation of Customer Feedback for Deal Recommendation Use of Peixe Urbano real-world dataset 70 Origins of the Material • Costa, T.F., Lacerda, A., Santos, R.L.T., and Ziviani, N. (2014). Exploiting taxonomies for new item recommendation. • Menezes, D., Lacerda, A., Silva, L.,Veloso, A., Ziviani, N. (2013). Weighted slope one predictors revisited. WWW Companion. • Ribeiro, M.T., Lacerda, A.,Veloso, A., Ziviani, N. (2012). Pareto-efficient hybridization for multi-objective recommender systems. RecSys • Menezes, G.V., Almeida, J.M., Belém, F., Gonçalves, M.A., Lacerda, A., Moura, E.S., Pappa, G.L.,Veloso, A., Ziviani, N. (2010). Demand-driven tag recommendation. ECML/PKDD. 71 Origins of the Material • Ribeiro, M.T., Lacerda, A., Moura, E.S., Hata, I.,Veloso, A., Ziviani, N. (2014). Multi-objective pareto-efficient approaches for recommender systems. ACM Transactions on Intelligent Systems and Technology. (Accepted) • Guimarães, A., Costa, T.F., Lacerda, A., Pappa, G.L., Ziviani, N. (2013). GUARD: A genetic unified approach for recommendation. Journal of Information and Data Management. • Matos-Jr, O., Ziviani, N., Botelho, F.C., Cristo, M., Lacerda, A., Silva, A.S. (2012). Using taxonomies for product recommendation. Journal of Information and Data Management. • Botelho, F.C., Lacerda, A., Menezes, G.V., Ziviani, N. (2010). Minimal perfect hashing: A competitive method for indexing internal memory. Information Science. 72 DDS literature • • • • • • • Merchant experience using Groupon [Dholakia 2010] DDS business model [Byers et al. 2011] Merchants repeatedly participants [Farahat et al. 2012] Health of DDSs business model [Byers et al. 2012b] DDSs as marketing channels [Kumar and Rajan 2012] Customer loyalty [Krasnova et al. 2013] Shopping behavior [Li and Wu 2013] 73 DDS literature • • Deals propagation on Twitter [Park and Chung 2012] Impact on Yelp rating • negative side effect [Byers et al. 2012a] • • • revision [Byers et al. 2012c] Deal Selection/Scheduling [Lappas and Terzi 2012] • • deal size prediction deal size prediction Deal size sequential prediction [Ye et al. 2012] 74 Deal size EM predictor local prediction market size unknown parameter which re-scales the representativeness of each market • Minimize the RMSE as loss function 75 Example Representa)veness+ Market'1' 20' Market'2' 70' Market'3' 10' Ranking+ Local+ Market+ Market+Perc+ Size/Market+ Deal+size+ D1' 20' M1' 20/90' 10' (0.5'*'10)'+'(0.5'*'20)'='15' D2' 30' M2' 70/90' 70' (0.5'*'70)'+'(0.5'*'30)'='50' D3' 40' M1' 20/90' 10' (0.5'*'10)'+'(0.5'*'40)'='25' 76 Textual Analysis • • RQ2: Are terms descriptive and discriminative? Fernandes et al. [2007] and Figueiredo et al. [2009] Descriptive Discriminative 77 Multi armed bandits • Multi-armed bandits (MAB) • • N independent gambling machines (armed bandits) • • Rewards when playing machine i: Xi,1, Xi,2, ... Each machine has an unknown probability distribution for generating the reward Algorithm A chooses next machine based on previous sequence of plays and rewards 78 MAB algorithms • UCB algoritthm • At time t, you have an upper confidence bound (UCB) on the expected rewards • • play the arm having the largest UCB! UCB1-Normal (Auer et al. [2002]) sum of squared rewards obtained from arm ci average reward obtained from arm ci number of times arm ci has been played so far 79 Deal recommendation example u1 u7 rank u3 Exploration u1 u2 u2 Exploitation u7 Most Popular 1 i2 (10) 2 i4 (8) 3 i6 (4) 4 i8 (2) i6 i4 i4 i2 i6 i8 80 Time-aware reward [Mailchimp] 81 82 Future Work • Are non-textual features effective for market identification? • Different weighting schemes can provide a better deal representation? • What is the impact of a more flexible assignment of deals to markets in deal size prediction effectiveness? • What is the impact of our deal size predicton solution on deal selection and deal scheduling problems? 83 Future Work • Can learning to rank algorithms provide a better way to sort customers? • Can we use the current catalog to build a contextual multi-armed bandit algorithm for both, email prioritization and deal recommendation? • Can we combine email prioritization and deal recommendation solutions to select customers and improve recommendation effectiveness? 84 Email example • screenshot PU 85 Conclusions • Taking into account deals interaction and structure improve deal size prediction • The proposed method to prioritize emails enables a 10% reduction in terms of the number of emails sent without affecting reward • The proposed method to prioritize emails may avoid sending about 30%-40% of the emails, if a small reduction in terms of reward is allowed 86 Conclusions • The recommendation performance of existing algorithms is no better than the naive strategy of suggesting nonpersonalized deals for all customers • The proposed exploration-exploitation algorithms are very effective and well-suited to DDS recommendation scenario 87 Explore-then-exploit • RQ4: What is the impact of different criteria for sorting customers? epsilon Degree 0.0 0.01 0.05 0.10 0.20 0.30 0.40 0.50 0.90 0.199 0.201 0.202 0.206 0.213 0.224 0.231 0.228 0.204 Clustering Betweenness Eigenvector Coefficient 0.199 0.199 0.199 0.214 0.203 0.218 0.224 0.203 0.242 0.240 0.206 0.248 0.258 0.215 0.252 0.264 0.223 0.248 0.255 0.229 0.248 0.252 0.229 0.243 0.207 0.202 0.212 PageRank 0.199 0.203 0.204 0.213 0.222 0.237 0.237 0.240 0.205 88 Cumulative reward C1 C2 C3 C4 C5 C6 C7 e = 0.1 e = 0.5 e = 0.9 UCB 10% 1.77 4.72 3.41 2.63 2.15 1.90 4.65 5.01 4.43 3.56 4.55 Fraction of emails sent 50% 90% 8.18 24.04 19.42 28.54 18.13 27.70 13.60 27.30 13.01 27.23 15.04 27.10 17.89 27.82 21.58 28.57 20.30 28.02 18.82 27.33 20.45 28.36 100% 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 89 Thesis content • Revenue Maximization • • Deal selection Customer Satisfaction • • Email prioritization Deal recommendation 90 Descriptive and discriminative power Name Title Highlight Description BoW Concatenation GP 3.11 2.46 1.84 1.14 2.14 2.01 AFS LS PU 2.38 3.48 1.93 2.55 - 1.68 0.95 0.35 1.86 2.28 0.88 2.14 GP 9.06 8.80 8.49 8.92 8.91 8.86 AIFF LS 7.28 7.09 6.66 6.67 6.80 PU 7.49 7.05 6.93 6.85 6.81 6.97 91 Method Validation 7 arms: • 1 perfect • 6 inefective Cumulative Reward • 16 14 12 10 8 6 4 2 0 (0.10) (0.50) (0.90) UCB Random 1 5 10 15 20 25 30 30-Day Period 92 Daily-Deals Sites (DDSs) -Performance-based payment -Deal description Daily-Deal Site -Customer information -Preferences/tastes (mediator) - Performance Feedback -Relevant Deals - Convertions/clicks Merchant (seller) Customer -Brands -Products/services (buyer) 93 Non-textual features • • • • • • • • • • • deal location (city) business reputation (from Alexa) price discounted price tipping point multiple days featured limited day of week category seasonality (period of the year when the offer is made available) 94 Results Total Purchase Less Recent Savings Average Price Average Discount Average Discount Percentage Customer Preference 1.0 Arm Usage 0.8 0.6 0.4 0.2 0.0 1 2 • • 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Testing Days 50% of emails sent epsilon-greedy (0.10) 95 MAB recommenders 96 EM predictor example 97 Sorting criteria independence • RQ9: Are criteria independent? • Kendall Tau C1 C2 C3 C4 C5 C6 C7 C1 C2 C3 C4 C5 C6 C7 1.000 0.032 0.070 0.025 -0.018 -0.021 0.014 0.032 1.000 0.042 -0.013 0.012 -0.022 0.008 0.070 0.042 1.000 0.033 0.016 -0.011 0.010 0.025 -0.013 0.033 1.000 0.025 0.018 0.012 -0.018 0.012 0.016 0.025 1.000 -0.012 0.009 -0.021 -0.022 -0.011 0.018 -0.012 1.000 -0.016 0.014 0.008 0.010 0.012 0.009 -0.016 1.000 98 Arms usage • all graphs 99 Sorting dependence • chapter 5 table 100 RecSys tasks • figura da tese • • rating prediction top-N recommendation 101 Re-ranking strategy • exemplo de como fazemos o re-ranking da saida dos algoritmos de recomendacao 102 Working papers • Lacerda, A.,Veloso, A., Ziviani, N. (2014). Will it flop or rock? improving deal size prediction by exploiting market interplay and intra-market competition. • Lacerda, A.,Veloso, A., Ziviani, N. (2014). Adding value to daily-deals recommendation: Matching customers and deals with multi-armed bandits. • Costa, T.F., Lacerda, A., Santos, R.L.T., Ziviani, N. (2014). Exploiting taxonomies for new item recommendation. 103 Textual features Average number of distinct terms GP LS PU Name 2.63 2.44 2.38 Title 8.63 5.41 11.44 Highlight 11.67 - 52.56 Description 132.02 57.24 93.49 BoW 135.75 58.06 123.79 Concatenation 154.65 65.23 161.37 104 Sorting criteria • Separate customers that: • are more likely to provide feedback • share similar tastes with many others Exploration Exploration Co-purchase Network Building Co-Purchase Network Sorting Sorting Criterion Splitting Splitting Strategy Recommendation Recommender Algorithm Exploitation Feedback-based Re-ranking Recommendation Recommender Algorithm Exploitation 105 Method Personalized Mail Reward MAB Algorithm Target User Recommender ... Sorted Users (Arms) • • Deals Sorting customers by probability of click Select the best sorting criterion 106 Deal size EM predictor local prediction market size unknown parameter which re-scales the representativeness of each market • Minimize the RMSE as loss function 107