The Shadow Value of Attention: Recommendation Ranking with Inventory Dynamics

Working paper by Pantelis Loupos and Can Urgun on inventory-aware recommendation ranking and the shadow value of scarce inventory.

Pantelis Loupos and Can Ürgün. Working paper.

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Summary

This paper develops a multi-armed bandit framework for inventory-aware recommendation ranking. The model allocates exposure based on both demand potential and the shadow value of scarce inventory, showing how recommendation systems should account for inventory dynamics when deciding what to rank and when.

Research Area

Retail analytics, recommendation systems, attention allocation, and inventory dynamics.