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Publications
Publications
  • March 2022
  • Article
  • Management Science

Learning to Rank an Assortment of Products

By: Kris Ferreira, Sunanda Parthasarathy and Shreyas Sekar
  • Format:Print
  • | Pages:21
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Abstract

We consider the product ranking challenge that online retailers face when their customers typically behave as “window shoppers”: they form an impression of the assortment after browsing products ranked in the initial positions and then decide whether to continue browsing. We design online learning algorithms for product ranking that maximize the number of customers who engage with the site. Customers’ product preferences and attention spans are correlated and unknown to the retailer; furthermore, the retailer cannot exploit similarities across products owing to the fact that the products are not necessarily characterized by a set of attributes. We develop a class of online learning-then-earning algorithms that prescribe a ranking to offer each customer, learning from preceding customers’ clickstream data to offer better rankings to subsequent customers. Our algorithms balance product popularity with diversity: the notion of appealing to a large variety of heterogeneous customers. We prove that our learning algorithms converge to a ranking that matches the best-known approximation factors for the offline, complete information setting. Finally, we partner with Wayfair—a multi-billion dollar home goods online retailer—to estimate the impact of our algorithms in practice via simulations using actual clickstream data, and we find that our algorithms yield a significant increase (5–30%) in the number of customers that engage with the site.

Keywords

Online Learning; Product Ranking; Assortment Optimization; Learning; Internet and the Web; Product Marketing; Consumer Behavior; E-commerce

Citation

Ferreira, Kris, Sunanda Parthasarathy, and Shreyas Sekar. "Learning to Rank an Assortment of Products." Management Science 68, no. 3 (March 2022): 1828–1848.
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About The Author

Kris Johnson Ferreira

Technology and Operations Management
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More from the Authors
  • Demand Learning and Pricing for Varying Assortments By: Kris Ferreira and Emily Mower
  • Market Segmentation Trees By: Ali Aouad, Adam Elmachtoub, Kris J. Ferreira and Ryan McNellis
  • Improving Human-Algorithm Collaboration: Causes and Mitigation of Over- and Under-Adherence By: Maya Balakrishnan, Kris Ferreira and Jordan Tong
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