Learning to Persuade on the Fly: Robustness Against Ignorance

Abstract

How Can Platforms Learn to Make Persuasive Recommendations? Many online platforms make recommendations to users on content from creators or products from sellers. The motivation underlying such recommendations is to persuade users into taking actions that also serve system-wide goals. To do this effectively, a platform needs to know the underlying distribution of payoff-relevant variables (such as content or product quality). However, this distributional information is often lacking—for example, when new content creators or sellers join a platform. In “Learning to Persuade on the Fly: Robustness Against Ignorance,” Zu, Iyer, and Xu study how a platform can make persuasive recommendations over time in the absence of distributional knowledge using a learning-based approach. They first propose and motivate a robust-persuasiveness criterion for settings with incomplete information. They then design an efficient recommendation algorithm that satisfies this criterion and achieves low regret compared with the benchmark of complete distributional knowledge. Overall, by relaxing the strong assumption of complete distributional knowledge, this research extends the applicability of information design to more practical settings.