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Structured, uncertainty-driven exploration in real-world consumer choice.

Eric Schulz1, Rahul Bhui2, Bradley C Love3,4

  • 1Department of Psychology, Harvard University, Cambridge, MA 02138; ericschulz@fas.harvard.edu.

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Summary
This summary is machine-generated.

People make better decisions by exploring options and generalizing learning. This study shows customers use sophisticated, uncertainty-directed strategies for exploration and feature-based generalization in real-world online food ordering.

Keywords:
decision makingexplorationgeneralizationreinforcement learning

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Area of Science:

  • Cognitive Science
  • Behavioral Economics
  • Computational Modeling

Background:

  • Effective decision-making relies on exploration and generalization.
  • Existing computational models of exploration are often limited to constrained laboratory settings.
  • Generalizability of these models to complex, real-world scenarios remains unclear.

Purpose of the Study:

  • To investigate the factors guiding exploratory behavior in a large-scale real-world dataset.
  • To analyze customer exploration and generalization strategies using computational models.
  • To determine if adaptive exploration and generalization principles apply to complex choice environments.

Main Methods:

  • Analysis of a dataset comprising 195,333 customers and 1,613,967 orders from an online food delivery service.
  • Application of computational models to analyze observed customer behavior.
  • Examination of exploration patterns and generalization strategies within the dataset.

Main Results:

  • Customers exhibit hallmarks of adaptive exploration and generalization.
  • Evidence suggests customers engage in uncertainty-directed exploration.
  • Feature-based generalization strategies appear to guide customer exploration.

Conclusions:

  • People employ sophisticated strategies for exploration in complex, real-world environments.
  • Findings support the applicability of computational models of exploration to practical choice problems.
  • Customer behavior in online food delivery reflects adaptive learning and decision-making principles.