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Asymptotic Randomised Control with applications to bandits

2020-10-14 · Samuel N. Cohen, Tanut Treetanthiploet

We consider a general multi-armed bandit problem with correlated (and simple contextual and restless) elements, as a relaxed control problem. By introducing an entropy regularisation, we obtain a smooth asymptotic approximation to the value function. This yields a novel semi-index approximation of the optimal decision process. This semi-index can be interpreted as explicitly balancing an exploration-exploitation trade-off as in the optimistic (UCB) principle where the learning premium explicitly describes asymmetry of information available in the environment and non-linearity in the reward function. Performance of the resulting Asymptotic Randomised Control (ARC) algorithm compares favourably well with other approaches to correlated multi-armed bandits.

📄 PDF Abstract BibTeX arXiv:2010.07252

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ARCMulti-Armed Bandits

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