December 2023 A multiagent reinforcement learning framework for off-policy evaluation in two-sided markets
Chengchun Shi, Runzhe Wan, Ge Song, Shikai Luo, Hongtu Zhu, Rui Song
Author Affiliations +
Ann. Appl. Stat. 17(4): 2701-2722 (December 2023). DOI: 10.1214/22-AOAS1700

Abstract

The two-sided markets, such as ride-sharing companies, often involve a group of subjects who are making sequential decisions across time and/or location. With the rapid development of smart phones and internet of things, they have substantially transformed the transportation landscape of human beings. In this paper we consider large-scale fleet management in ride-sharing companies that involve multiple units in different areas receiving sequences of products (or treatments) over time. Major technical challenges, such as policy evaluation, arise in those studies because: (i) spatial and temporal proximities induce interference between locations and times, and (ii) the large number of locations results in the curse of dimensionality. To address both challenges simultaneously, we introduce a multiagent reinforcement learning (MARL) framework for carrying policy evaluation in these studies. We propose novel estimators for mean outcomes under different products that are consistent despite the high dimensionality of state-action space. The proposed estimator works favorably in simulation experiments. We further illustrate our method using a real dataset obtained from a two-sided marketplace company to evaluate the effects of applying different subsidizing policies. A Python implementation of our proposed method is available in the Supplementary Material and also at https://github.com/RunzheStat/CausalMARL.

Funding Statement

Shi’s research was partly supported by the EPSRC Grant EP/W014971/1.
Song’s research was partially supported by NSF Grant DMS-2003637.

Acknowledgments

We thank the Associated Editor and two anonymous referees for their constructive comments and suggestions.

Citation

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Chengchun Shi. Runzhe Wan. Ge Song. Shikai Luo. Hongtu Zhu. Rui Song. "A multiagent reinforcement learning framework for off-policy evaluation in two-sided markets." Ann. Appl. Stat. 17 (4) 2701 - 2722, December 2023. https://doi.org/10.1214/22-AOAS1700

Information

Received: 1 March 2021; Revised: 1 June 2022; Published: December 2023
First available in Project Euclid: 30 October 2023

MathSciNet: MR4661211
Digital Object Identifier: 10.1214/22-AOAS1700

Keywords: Multiagent system , policy evaluation , reinforcement learning , spatiotemporal studies

Rights: Copyright © 2023 Institute of Mathematical Statistics

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Vol.17 • No. 4 • December 2023
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