Practical Multi-Armed Bandit Algorithms in Python

Vishal Lakha | Jan 11, 2025

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Learnings from Multi-Armed Bandit (MAB) Course

Introduction to Multi-Armed Bandit Problems

  • What is a Multi-Armed Bandit (MAB) problem?
  • Real-world applications: Online advertising, recommendation systems, clinical trials
  • Modelling business problems as MAB: Automating decision-making with AI agents

Reinforcement Learning & Exploration-Exploitation Tradeoff

  • The Exploration-Exploitation Dilemma: Balancing between trying new options vs exploiting known rewards
  • Challenges in Reinforcement Learning (RL): Sample efficiency, reward design

Algorithmic Strategies for MAB

Epsilon-Greedy Strategy

  • Concept: Balancing exploration with a probability ε and exploitation otherwise
  • Python Implementation: Step-by-step coding of Epsilon-Greedy

Softmax Exploration Strategy

  • Concept: Selecting actions probabilistically based on their estimated values
  • Python Implementation: Implementing Softmax exploration in Python

Optimistic Initialization Strategy

  • Concept: Encouraging exploration by initializing high action values
  • Python Implementation: Coding Optimistic Initialization for MAB

Upper Confidence Bounds (UCB) Strategy

  • Concept: Choosing actions based on confidence intervals
  • Python Implementation: Implementing UCB algorithm in Python

Practical Considerations in RL

  • Reward Function Design: Challenges in defining effective reward structures
  • Sample Efficiency: Optimizing learning with minimal data
  • Incremental Sampling for Action Value Estimation: Updating action values dynamically
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