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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Ranking Policy Learning via Marketplace Expected Value Estimation From Observational Data</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Ehsan Ebrahimzadeh</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Nikhil Monga</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Hang Gao</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Alex Cozzi</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Abraham Bagherjeiran</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>eBay Search Ranking</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Monetization</string-name>
        </contrib>
      </contrib-group>
      <abstract>
        <p>We develop a decision making framework to cast the problem of learning a ranking policy for search or recommendation engines in a two-sided e-Commerce marketplace as an expected reward optimization problem using observational data. As a value allocation mechanism, the ranking policy allocates retrieved items to designated slots to maximize the user utility from the slotted items at any given stage of the shopping journey. The objective of this allocation can in turn be defined with respect to the underlying probabilistic user browsing model as the expected number of interaction events on presented items matching the user intent, given the ranking context. Recognizing the efect of ranking as an intervention action to inform user interactions with slotted items and the corresponding economic value of interaction events for the marketplace, we formulate the expected reward of the marketplace as the collective value from all presented ranking actions. The key element in this formulation is the notion of context value distribution, which signifies not only the attribution of value to ranking interventions within a session but also the distribution of marketplace reward across user sessions. We build empirical estimates for the expected reward of the marketplace from observational data that account for the heterogeneity of economic value across session contexts as well as the distribution shifts in learning from observational user activity data. The ranking policy can then be trained by optimizing the empirical expected reward estimates via standard Bayesian inference techniques. We discuss the connections and distinctions between our proposed perspective and the standard supervised approach to learning to rank via empirical risk minimization with respect to standard information retrieval metrics. The specific focus of this paper is to highlight the significance of the empirical context value distribution in shaping the properties of the corresponding ranking policies by contrasting various empirical importance sampling distributions. We report empirical results from online randomized controlled experiments on a product search ranking task in a major e-commerce platform demonstrating the fundamental trade-ofs governed by ranking polices trained on empirical reward estimates with respect to extreme choices of the context value distribution.</p>
      </abstract>
      <kwd-group>
        <kwd>eol&gt;Learning to Rank</kwd>
        <kwd>Expected Reward Estimation</kwd>
        <kwd>policy Learning</kwd>
        <kwd>Two-Sided Marketplaces</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1. Introduction</title>
      <sec id="sec-1-1">
        <title>1.1. Motivation</title>
        <p>Two-sided e-commerce marketplaces are intermediary economic platforms that connect buyers
and sellers, usually providing a wide selection of products for the buyers from a diverse array of
sellers. The primary buyer-focused objective of the marketplace is to guide buyers through their
search and discovery journeys to identify and purchase items that fulfill their shopping intention.
Users’ browsing and purchase journeys in the marketplace are impacted by an ecosystem
of decision making systems, most notably via the ranking policies in various stages of their
shopping journeys from discovery pages to the Search Engine Result Pages(SERP). An efective
ranking policy aims to showcase a set of results that match the intent of the user in any given
ranking context along the shopping journey with rewards realized as interaction events on the
slotted items on the page. Collectively, user journeys are not equally likely to produce value
for the marketplace, and the goal is to expand the set of successful user sessions, optimizing a
suitable notion of long-term value for users and the marketplace. It is therefore essential that the
ranking policy account for the utility of all stakeholders in this economic setting. In standard
formulations of learning to rank in the information retrieval literature, however, there is usually
no clear connection between the training objective for the ranking policy, the long-term value
for the collective of the users and the key performance metrics of the marketplace. In this paper,
focusing primarily on the search ranking policy invoked in response to users’ search queries, we
formulate the ranking policy learning as an optimization problem based on a (counterfactual)
estimate of the marketplace reward from observational data.</p>
      </sec>
      <sec id="sec-1-2">
        <title>1.2. Contributions and Related Work</title>
        <p>Contribution 1.1. We propose a decision making framework establishing explicit connections
between learning a ranking policy for a search/recommendation engines and building efective
empirical estimates for a suitable notion of marketplace expected reward.</p>
        <p>
          The problem of developing merit scores for ranking items, post a selection stage from
a large pool of candidates, is widely studied in the context of recommendation systems[
          <xref ref-type="bibr" rid="ref1">1</xref>
          ],
display advertising[
          <xref ref-type="bibr" rid="ref2">2</xref>
          ], sponsored search[
          <xref ref-type="bibr" rid="ref3">3</xref>
          ], and search ranking[
          <xref ref-type="bibr" rid="ref4">4</xref>
          ], where the sequential and
hierarchical nature of user interaction events and the sparsity of success events[
          <xref ref-type="bibr" rid="ref1 ref5 ref6 ref7">5, 1, 6, 7</xref>
          ] in
user journeys are taken into account. Value-aware policies in the context of advertising[
          <xref ref-type="bibr" rid="ref3 ref3">3, 3</xref>
          ],
and economic recommender systems[
          <xref ref-type="bibr" rid="ref1 ref8 ref9">8, 9, 1</xref>
          ] account for business objectives, primarily through
manipulations of the merit scores based on conversion likelihood estimates and the price of the
candidate items to develop a point-wise notion of expected value for a given candidate item. In
contrast, our approach is user focused in that the goal of the ranking policy is to optimize for
the user utility in the sense of maximizing the expected number of engagements on desirable
items at every stage of the search journey. An alternative formulation is to frame the search
ranking policy learning as a multi-stakeholder multi-objective optimization problem[
          <xref ref-type="bibr" rid="ref10 ref11">10, 11</xref>
          ],
with potentially conflicting objectives[
          <xref ref-type="bibr" rid="ref12">12</xref>
          ] that account either for business constraints[
          <xref ref-type="bibr" rid="ref13">13</xref>
          ] or
group exposure constraints[
          <xref ref-type="bibr" rid="ref14">14</xref>
          ]. The notion of value for the marketplace is introduced in
the ranking policy objective via an importance weighting distribution that signifies both the
economic value and the likelihood of realizing some reward from an interaction event with an
item that satisfies the user intent.
        </p>
        <p>Contribution 1.2. We characterize the key elements in building efective (policy-dependent)
expected reward estimates from observational data, controlling for (1) the heterogeneity of
the session value distribution, (2) the contribution of interventions within a user journey via
the reward attribution scheme, and (3) the distribution shifts incurred by selection biases in
observational data.</p>
        <p>
          Reinforcement learning(RL) is a powerful framework to account for sequential interventions
within the session by formulating the problem of recommending new items[
          <xref ref-type="bibr" rid="ref15">15</xref>
          ] or search
ranking[
          <xref ref-type="bibr" rid="ref16">16</xref>
          ] as a Markov Decision Process (MDP). By expanding the planning horizon and
adopting intermediary reward shaping techniques, RL-based approaches account for delayed
rewards in the session, via suitable representations of the dynamic session context(state) in
session trajectories. Recognizing the selection biases in the observed user behavior data, ofline
reinforcement learning techniques, including inverse propensity weighting[
          <xref ref-type="bibr" rid="ref17">17</xref>
          ], and
actorcritic methods[
          <xref ref-type="bibr" rid="ref18">18</xref>
          ], are adopted to account for distribution shifts in learning from logged data.
Similar counterfactual training techniques based on propensity weighting and potential outcome
modeling are developed in the context of counterfactual learning to rank for search ranking
problems[
          <xref ref-type="bibr" rid="ref19 ref20 ref21">19, 20, 21</xref>
          ]. There is, however, no clear account of the heterogeneity of marketplace
reward across session trajectories, neither in the standard counterfactual supervised learning
perspective nor in ofline reinforcement learning approaches.
        </p>
        <p>Contribution 1.3. We highlight the significance of the empirical session-context value distribution
in building efective marketplace expected reward estimates by demonstrating fundamental
performance trade-ofs governed by the search ranking policies trained on extreme choices of the
context value distribution via rigorous counterfactual evaluations as well as online randomized
controlled experiments in a major e-commerce platform.</p>
        <p>The definition of success events and the associated reward to the user events is flexible
in our framework and is informed by the strategic choices of the marketplace. Specifically,
an early-stage marketplace may focus on maximizing the collective number of engagements,
while an acquisition-oriented marketplace targets the collective number of purchases, while a
revenue-driven marketplace chooses to maximize the long-term gross merchandise value.</p>
      </sec>
      <sec id="sec-1-3">
        <title>1.3. Notation</title>
        <p>Here is a list of notation adopted throughout the paper. Sets and ordered sets(lists) are
represented with upper-case calligraphic symbols; such as  . Random quantities are shown in
bold such as x with realization . The expected value of random variable x is denoted by E[x]
and the conditional expectation of a random variable z =  (x, y) given y is denoted by E[z|y]
or Ex∼ P()[z]. For a function  : X → R, the | | dimensional array [ ()]∈ is denoted by
 ( ).</p>
      </sec>
    </sec>
    <sec id="sec-2">
      <title>2. Problem Setup</title>
      <sec id="sec-2-1">
        <title>2.1. Decision Making Framework</title>
        <p>
          The marketplace is interested in maximizing the average total reward across all user session
trajectories over a long time horizon
1 ∑︁  ,
 ≤ 
(1)
where  is the economic value from a successfully served search session . Our framework is
lfexible in the choice of the reward function and we discuss the fundamental trade-ofs between
multiple strategic marketplace long term reward choices, namely revenue-based, value per
engagement and value per acquisition marketplaces. The reward from a session trajectory is
assumed to be non-negative. Although our framework, can be extended to account for negative
rewards, we ignore it in our formalization. We assume that the reward over search journeys
is a stationary ergodic stochastic process. By invoking Birkhof’s ergodic theorem[
          <xref ref-type="bibr" rid="ref22">22</xref>
          ], with
probability 1, the long term temporal average is same as the expected reward, i.e.
(2)
(3)
where the expectation is taken with respect to the randomness in the session context and reward
distribution.
        </p>
        <p>While our formalization can naturally be extended to search journeys with complex goals,
we focus on a typical e-commerce purchase decision making scenario of session trajectory a
with a single product intent, ignoring sessions with multi-product purchase intent, as well as
informational and navigational search sessions. We recognize that users’ decisions are impacted
by multiple independently optimized decision making systems, but we are oblivious to potential
interactions of the ranking policy with these systems, specifically to the closely related query
understanding and candidate retrieval policies. We only focus on policy learning for search
result pages with a single layer presentation semantic where the action of the ranking policy
is the permutation/ranking of a largely homogeneous set of comparable items for a flat
singlelayered presentation of the results, ignoring the multiplicity of user’s search intent and diversity
considerations for the result set.</p>
        <p>We cast the problem into a Bayesian decision making framework with a user-focused
perspective on the definition of success upon a ranking action. The ranking policy aims to increase
the expected number of engagements on items that meet the user intent, and the reward is
proportional to the likelihood of a success event(non-zero reward) from the user interactions on
the search results page produced by the ranking policy. A crucial aspect of this framework is to
account for distribution shifts in observational data, i.e. the distinction between the distribution
of the logged search activity data that the policy is trained and the inference time distribution
of user events.</p>
      </sec>
      <sec id="sec-2-2">
        <title>2.2. Success From a Ranking Intervention</title>
        <p>Given a search query  within a session context , the ranking policy  :  → {1, · · · ,  }
maps a candidate item d from the retrieved set  to a slot  (). The notion of success with
respect to a slotting  () of the items on the SERP  is defined based on the efectiveness of
the policy in driving user interaction events(Click). Specifically, the objective of the ranking
policy on a given ranked SERP is to increase the expected number of engagements on desirable
items(suitably defined)  () given the session context upon issuing the query ≺ ; i.e.</p>
        <p>E[c ()|≺ ],
where the expectation is with respect to the randomness in user preferences and browsing
behaviors in the given query context and possibly the randomness in the ranking policy(if
stochastic). Note that ≺  subsumes all the relevant contextual information upon issuing
the query ; including all the queries and the corresponding surfaced items, as well as the
engaged items prior to the current query context. In the subsequent sections, we will make
probabilistic assumptions on users’ browsing and click behaviors and build efective policy
dependent empirical estimators.</p>
      </sec>
      <sec id="sec-2-3">
        <title>2.3. Success From a User Session</title>
        <p>The notion of success with respect to a user session is defined based on interaction events on
desirable items across all interventions by the marketplace within a user journey. Given the per
query ranking objective E[c ()|≺ ] (i.e. the expected number of desirable engagements from
the SERP given the session context upon issuing the query), the success from the overall user
session is shaped by the distribution P(|) that signifies the contribution of the interactions
on the ranked SERP  to the overall success of the user search session .</p>
        <p>
          Eq∼ P(|≺ )[E[c (q)|≺ q]],
This distribution is usually referred to as the success attribution distribution, which is primarily
studied in the context of online advertising[
          <xref ref-type="bibr" rid="ref23">23</xref>
          ]. The key diference is that in online advertising
the unit of value attribution is item impression, while in this work we emphasize the attribution
of value to the ranked list shown for the query given the prior context. This is also related
to the credit assignment problem in reinforcement learning on how to attribute success to the
intermediate actions of the agent.
        </p>
      </sec>
      <sec id="sec-2-4">
        <title>2.4. Marketplace Expected Reward</title>
        <p>The expected reward of the marketplace from the presented ranking is then shaped by the
distribution of the value across search contexts, which signifies the economic value of the
user-interaction events in the sessions for the marketplace. The random variable vs captures
the strategic notion of the value of the session for the marketplace, which corresponds to the
value of the interactions events on the item(s) that satisfy the user’s intent. The expected reward
of the marketplace can then be written as</p>
        <p>Es,v[vsEq∼ P(|≺ )[E[c (q)|s≺ q]]],
We can also consider an alternative formulation where we assume that session value distribution
P() subsumes both the likelihood of the user session to lead to some reward for the search
engine as well as the reward value attributed to the user session :</p>
        <p>Es∼ P()[Eq∼ P(|≺ )[E[c (q)|s≺ q]]].
(6)
For a value-aware search engine with marketplace revenue objective, economic value is realized
only in the event of a transaction as the success event from a search session and the reward is
proportional to the price of the sold item(s). For a search engine that aims to optimize for the
volume of transactions, it is more suitable to adopt a value per acquisition notion of reward
oblivious to the price of the sold items. For a search engine with strategic goal of maximizing
(4)
(5)
user engagements for increased user retention and minimizing abandonment, it is more suitable
to adopt a value per click notion of reward oblivious to the post click transaction events.</p>
        <p>In the next section, we discuss empirical modeling techniques to build efective empirical
reward estimates from observational data, which efectively frame the problem as a standard
counterfactual empirical risk minimization with a value-aware context distribution.</p>
      </sec>
    </sec>
    <sec id="sec-3">
      <title>3. Expected Reward Estimation from Observational Data</title>
      <sec id="sec-3-1">
        <title>3.1. Estimating the Per Query Success</title>
        <p>We are interested in maximizing E[c ()|≺ ], the expected number of desirable engagements
across all the slots on the page, with a suitably parameterized ranking policy  . By
hypothesizing an explanatory click model based on causal constructs that govern user browsing and
engagement behaviors on search result pages, we can build efective likelihood models from
which we can estimate the parameters of the ranking policy via maximum likelihood estimation
using logged observational data. We instantiate this process with the simple widely adopted
click models in information retrieval. Assuming a vanilla Sequential Browsing Model along
with the standard Position-Dependent Examination Model, we can write the expected number
of desirable engagements as</p>
        <p>E[c ()|≺ ] = ∑︁ P(c − 1() = 1|≺ , ≺ )
=1

= ∑︁ P(c − 1() = 1|≺ , )
=1

= ∑︁ P(o − 1() = 1|)× P(R − 1() = 1|≺ )
=1

= ∑︁ P(o − 1() = 1)× P(R − 1() = 1|≺ )
=1
(7)
(8)
(9)
(10)
where the first line follows from sequential browsing assumption with c − 1() = 1 representing
≺  representing the slotted items prior to
the click event on the item ranked at position  and 
the item ranked in position . The second line follows from assuming that the user interaction
event on a given slot is independent of the placed items in the previous slots. The third
line follows from the standard examination-based click model that posits that a click event
can be expressed as the intersection of a query specific examination event o − 1() = 1 and a
presentation-independent contextual relevance event R − 1() = 1; and the last line follows from
assuming a query-independent global rank discount function on the examination probabilities.
The examination probabilities, a.k.a. propensity scores, are context-specific and can be estimated
via explicit online interventions or from observational data. By considering a simple uni-variate
model fit on the estimated propensities as a function of rank, one can build data-driven
rankdiscount functions to estimate users’ examination efort. However, the standard approach is to
adopt vanilla log-based context-oblivious rank discounts as generic estimates of the examination
probability P^(o − 1() = 1), i.e.</p>
        <p>ℓ() =
.</p>
        <p>Given an empirical estimate ^ of Bayes contextual relevance probabilities P(R − 1() = 1|≺ ),
one can derive the standard discounted cumulative gain (DCG) estimate E^DCG[c ()|≺ ] of
the expected reward per query for the policy  (· ) as
ℓ( ()) ^().
(11)</p>
        <p>Upon building all the elements of the expected reward estimates, specifically the
policydependent per query expected reward estimates, we can train the ranking policy by maximizing
this empirical reward estimate, as elaborated in the next section.</p>
      </sec>
      <sec id="sec-3-2">
        <title>3.2. Estimating the Session Expected Reward</title>
        <sec id="sec-3-2-1">
          <title>3.2.1. In-session success attribution</title>
          <p>Several techniques can be adopted to estimate the contribution of a ranked SERP  and the
corresponding observed or potential interactions on that page to the overall success of the user
search session . A simple yet popular solution in the context of online advertising is to adopt
an attribution distribution that assigns all the probability mass to the immediate query context
preceding the post-click conversion event, which is referred to as Last Touch Attribution scheme.
In contrast to this tight attribution scheme, one can assume a uniform distribution across all
queries in the session in which the item with the attributed interaction event of interest was
retrieved as a candidate item, oblivious to whether it was even impressed on the search result
page. This approach is referred to as All Touch attribution scheme. Alternatively, One can
assume a (Markovian) probabilistic graphical model on user’s touch points within a session
journey and infer a probabilistic multi-touch attribution distribution</p>
          <p>P^(|≺ )
from observational data. Similarly, one can adopt an attention based sequence modeling
approach and infer the contribution weights for interaction events along the user journey
with a conversion prediction model. Lose attribution schemes, like the all touch attribution
scheme, signify the powerful idea of counterfactual training context generation for ranking policy
learning, where in contrast to predictive perspectives, the policy can collect reward from a
ranking context where the item of interest was not observed by the user. As discussed in the
empirical results section, such attribution schemes are particularly efective for capturing the
user behavior in search sessions with longer feedback loops, e.g. sessions with high purchase
value user intent.</p>
        </sec>
        <sec id="sec-3-2-2">
          <title>3.2.2. Session Value estimation</title>
          <p>
            In order to highlight the importance of the session value distribution,
let us focus on a search engine with a value per acquisition objective. A straightforward
empirical session value distribution is adopt a uniform distribution on sessions that lead to a
transaction event. Such session value selection distribution leads to survivorship bias in training
context selection in that trafic segments where transaction events are rare, e.g. user sessions
with luxury intent, will be under-represented in training. A simple approach is to expand
the definition of success events and estimate the likelihood of session success with a
contentoblivious estimate based on the aggregate conversion likelihood of the richest engagement event
attributed to the element(s) engaged. This perspective on building mixture distributions based
on the richest post-click engagement event was shown to be efective in capturing potential
conversions from browse-heavy user journeys[
            <xref ref-type="bibr" rid="ref24">24</xref>
            ].
          </p>
          <p>For a revenue-focused marketplace, as discussed in Section 2.2, the value of a search session is
proportional to the price of the item that matches the user intent. In the presence of an observed
success event in the logged data, the purchase price of the item to which the success event is
attributed is the realization of the session value; otherwise, in the absence of an interaction
event, the value of the session has to be estimated from the content of the asked intent in user
queries, or a Canonical set of actual or synthesized items that match the user intent.</p>
        </sec>
      </sec>
      <sec id="sec-3-3">
        <title>3.3. Selection Bias Correction</title>
        <p>One of the main challenges in learning from observational data is the distribution shift between
the training data collected from the logging policies and the inference data distribution. We
therefore have to introduce another set of techniques, e.g. importance weighting distributions,
to account for this mismatch between the (population) expected reward in (6) and the estimated
expected reward from the estimated quantities in the previous sections; that is,
Es∼ P^()[Eq∼ P^(|≺ )[E^[c (q)|s≺ q]]].
(12)
An important source of distribution shift in observational search activity data is the the selection
bias due to presentation of the items on the page and the sequential browsing of the users,
implying that we only observe relevancy of the items to the user only in the event of an explicit
user engagement and it is more likely to observe engagements on SERPs from higher ranking
slots.</p>
        <p>
          A key technique to account for this efect is to define a suitable notion of propensity, which is
developed in the context of studying the efect of a treatment(an intervention) on a population
by taking into account attributes of the treatment unit in the way the treatment is assigned. In
the context of ranking, the treatment is defined in correspondence to the examination of a slotted
item by the user, but the key diference with the standard applications of this concept is that
the examination variable is not fully observable. An alternative approach based on potential
outcome modeling, similar to actor-critic networks in the context of ofline reinforcement
learning, is proposed in [
          <xref ref-type="bibr" rid="ref20">20</xref>
          ], where distilled knowledge from a teacher model is used in the
form of soft predicted relevance labels to account for unobserved user feedback to achieve
variance reduction and improved generalization.
        </p>
      </sec>
      <sec id="sec-3-4">
        <title>3.4. Variance Reduction and Generalization</title>
        <p>Having discussed an array of importance weighting schemes to build empirical expected reward
estimates, it is essential to develop variance reduction techniques to control the generalization
behavior of expected reward estimators. For brevity of presentation, we briefly discuss the
various reduction techniques adopted and ignore developing generalization bounds on the bias
and variance of the estimation error of the proposed empirical reward estimation techniques.</p>
        <sec id="sec-3-4-1">
          <title>3.4.1. Truncation and Bucketing</title>
          <p>
            Clipping and truncated importance sampling techniques[
            <xref ref-type="bibr" rid="ref25 ref26">25, 26</xref>
            ] are popular techniques to
control the variance and generalization behavior of inverse propensity weighting estimators
when there is high variance in the estimated propensities. Since we combine multiple
importance sampling techniques to account for selection bias, success likelihood, and context
value distribution across highly heterogeneous user trajectories, we adopt this simple variance
reduction technique of the shelf.
          </p>
          <p>In building empirical session value distributions for a revenue focused marketplace reward,
relying on the purchase price of the success items leads to a very high variance estimator,
particularly in the presence of high heterogeneity in price intent across user trajectories. Instead,
we can use a stratification technique by bucketing user sessions based on value buckets defined
according to the empirical revenue distribution. Specifically, we can build a session value
distribution based on the empirical revenue share of the bucket corresponding to the price of
the purchased item.</p>
        </sec>
        <sec id="sec-3-4-2">
          <title>3.4.2. Potential Outcome Modeling</title>
          <p>
            One of the the primary challenges of counterfactual learning to rank from logged search activity
data is that the relevancy of the items is observed only in the event of explicit user engagements.
A popular idea in the context of contextual bandits and recommendation systems to circumvent
the challenges in this partial information setting is to use predictive models for reward estimates
as potential outcome models in conjunction with inverse propensity weighting[
            <xref ref-type="bibr" rid="ref27 ref28 ref29">27, 28, 29</xref>
            ].
There are a number of recent works in the context of unbiased response prediction that leverage
and analyze the doubly robust technique[
            <xref ref-type="bibr" rid="ref21 ref30">30, 31, 32, 21</xref>
            ]. In [
            <xref ref-type="bibr" rid="ref20">20</xref>
            ], a generalized form of potential
outcome modeling is proposed where the distilled knowledge from a relevance teacher is
used in the form of soft predicted relevance labels to help the student with more efective
list-wise comparisons, variance reduction, and improved generalization behavior. This is similar
to the idea of actor-critic networks in the context of ofline reinforcement learning[
            <xref ref-type="bibr" rid="ref18">18</xref>
            ], and
augmentation policy in the context of contextual bandits[33]. Using knowledge distillation helps
build training contexts from logged search contexts without user interaction events leveraging
complex models. To simplify the discussions, we ignore discussing any details about the teacher
models used in our experimental setup.
          </p>
        </sec>
        <sec id="sec-3-4-3">
          <title>3.4.3. Stratification and Normalization</title>
          <p>Efective stratification is a key technique in the context of importance weighting estimators, e.g.
the context value binning idea discussed in sub-section 3.4.1 or training context stratification
based on characteristics of logged training contexts[34]. We adopt Self-Normalizing propensity
based estimators, recently analyzed in [35], where we use engagement ranks as yet another
stratification dimension in our proposed estimators. Yet another standard variance reduction
technique that we adopt to control the contribution of the search sessions with many success
events in the observational data is to adopt normalization techniques; e.g. the standard Ideal
cumulative gain normalization for the per query loss. We note that under this cumulative
reward normalization technique, per item propensity weights should be reformulated as context
weights.</p>
          <p>Having equipped our empirical reward estimates with variance reduction techniques, from
this point on, we can assume that the efect of all importance weighting schemes discussed so
far are reflected in importance weights ^,.</p>
        </sec>
      </sec>
      <sec id="sec-3-5">
        <title>3.5. Optimization Objective for the Ranking Policy</title>
        <p>We consider deterministic policies parameterized by a scoring function  , such that   =
argSort(f), oblivious to the representation of the items and the ranking context. An appealing
approach, particularly in the context of online advertising and sponsored search, is to directly
estimate the Bayes contextual relevance probabilities P(R = 1|≺ ), or equivalently the
counterfactual probability of click had the item been examined P(c = 1|≺ , do(o = 1)) via
a standard supervised predictive models, i.e.</p>
        <p>∈
∑︁ ^, ∑︁ D( ()||^),
,
(13)
where ^, is the empirical importance weights based on discussion in section 3.2,  is a
distance measure, e.g. cross entropy, between the predicted distributions  () and the properly
debiased empirical label distribution^. For estimating counterfactual probability of click that
is Contextually Well-Calibrated and Discriminative for ranking, we need very complex models
with rich feature representations, with careful data stratification and selection bias correction.
Since absolute merit estimation is usually a harder problem than diference in merit estimation,
we resort to alternative techniques for empirical expected reward optimization.</p>
        <p>The standard alternative approach is to adopt the LambdaLoss framework[36] and optimize
a pairwise upper bound on the (list-wise) empirical estimates for the expected number of
engagements, ℓ(  , ^), to circumvent the challenges of dealing with highly non-smooth
rankdependent policy function, which can be written as
ℓ(  , ^) =</p>
        <p>∑︁
,′∈
ΔE^  (swap^(, ′)) ( () −  (′)),
(14)
where E^  (swap^(, ′)) is the diference in the estimated expected number of engagements
had the ranked slots of the item pairs (, ′) been swapped and  (· ) is some inverse link function,
e.g. softMax. The approximate surrogate objective, suitably weighted with the empirical reward
estimates ^,, expressed as
∑︁ ^,ℓ(  , ^)
,
(15)
can then be optimized using iterative optimization techniques, like Expectation-maximization;
that is given an estimate  () at iteration , in order to build  (+1) from the gradient updates
from the objective function, the diference in estimated objective E^ () from the swap operation
is computed based on ranking order produced by  ().</p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>4. Evaluations and Discussions</title>
      <p>In Section 3, we discussed essential elements of building empirical expected reward estimates
for training efective search ranking policies. Since conducting thorough ablation studies for
characterizing the efect of each element in building empirical expected reward estimates is not
possible given the space constraints, we focus primarily on the rather under-explored element in
the literature, which is the efect of context value distribution discussed in section 3.2 in shaping
the properties and the generalization performance of the ranking policy.</p>
      <p>We focus on a product search ranking scenario in a major E-commerce platform and evaluate
candidate policies via online randomized control experiments, as well as rigorous counterfactual
evaluations on user session data collected from the online trafic. Since all experiment are
performed on proprietary data, we only report lifts compared to a simple clearly-specified
baseline, with a focus on the relevant choices for controlling the estimation error with respect
to the research question of interest, oblivious to the optimization framework, the feature
representations, and the hypothesis class. Specifically, we only discuss the choice of the ranking
objective and the relevant importance sampling and attribution techniques for building our
estimators of interest, without discussing the details of the models.</p>
      <sec id="sec-4-1">
        <title>4.1. Online Evaluation Framework</title>
        <p>Since the main goal of the proposed decision making framework is to build search ranking
policies that generalize with respect to a given notion of marketplace expected reward, we
primarily evaluate the performance of the candidate policies in online randomized controlled
experiments. Specifically, we adopt an experiment design and primary success metric defined
with respect to lifts in cumulative reward in treated user sessions. This cumulative reward
driven design is in contrast to the standard experiment design practices for incremental ranking
changes, where the primary success metric is set to be the standard (immediate) ranking
eficiency metrics that measure concentration of success events in Top slots, through simple
attribution and aggregation schemes across search result pages. In fact, top slot engagement
concentration metrics, e.g. per query DCG with respect to SERP interactions aggregated
uniformly across all queries, which are usually tightly correlated with the marketplace reward,
should only be treated as secondary metrics in the presence of a measurement of cumulative
reward in online experiments. We do recognize, however, that DCG-type metrics are particularly
crucial for counterfactual of-policy evaluations, as approximations to the per query expected
reward using logged data, because all we can do is to measure concentration of logged success
events in top slots upon the shufling action of the new target policy.</p>
        <p>We establish the fundamental trade-ofs between ranking policies trained on diferent
empirical expected reward objectives primary based on session level cumulative reward metrics,
including Number of Engagements, Number of Purchases, and Revenue, as measured in online
AB tests. For metrics that attribute the observed efect to search events, we use a simple
attribution schemes based on the immediate Search Result Page that precedes the user event of
interest.</p>
      </sec>
      <sec id="sec-4-2">
        <title>4.2. Training Objectives and Ofline Evaluation Metrics</title>
        <p>We adopt the standard supervised counterfactual training and evaluation framework based on
logged search activity data collected from the online trafic of a major E-commerce platform.
We are oblivious to the logging policy and collect datasets with importance sampling and
reward attribution semantics based on the corresponding notions of expected reward of interest.
Specifically, given a target notion of expected reward, the context value distribution remains
the same for training and evaluation datasets. For candidate item selection per SERP, however,
we sample three negative samples at random from impressed unengaged items within each
training context, but keep all the candidate items to be re-ranked by the candidate ranker for
the evaluation datasets.</p>
        <p>For all empirical expected reward metrics, we use the same, suitably debiased and normalized,
DCG approximation for the per query expected reward according to (11). Unless explicitly
stated otherwise, we use the following vanilla empirical context value distribution for building
expected reward estimates as training objectives and the counterfactual metrics.</p>
        <p>Expected number of engagements E^[C]: The session value distribution P^() is a uniform
distribution across logged sessions with at least one click event. We consider a simple last touch
attribution scheme P^ (|≺ ) for the distribution of reward among queries within the session.</p>
        <p />
        <p>Expected number of purchases E^[P]: The session value distribution P^ () is uniform
across logged sessions with at least one purchase event. We use a simple multi-touch attribution
scheme P^ (|≺ ) with uniform distribution across all queries in the converting session, where
the purchased item appeared as a candidate.</p>
        <p>Expected revenue E^[Rev]: The session value distribution P^ℛ() is defined on the sessions
with a transaction event according to the empirical revenue share of the bucket corresponding
to the price of the purchased item. The same multi-touch attribution from above is adopted for
this reward estimate as well.</p>
        <p>To best highlight the heterogeneity of user behavior with respect to the underlying shopping
intent and the associated fundamental trade-ofs between diferent notions of marketplace
expected reward, we also stratify our evaluations across trafic segments defined based on
purchase price intent of the users, as realized in the price of the purchased item. The price intent
bins are defined in such a way so that the empirical revenue distribution is roughly uniform
across value buckets.</p>
      </sec>
      <sec id="sec-4-3">
        <title>4.3. Research Questions</title>
        <sec id="sec-4-3-1">
          <title>4.3.1. Marketplace Reward Trade ofs</title>
          <p>The primary insight that we would like to highlight in our evaluations is the heterogeneity of
users’ browsing and shopping intents, as reflected in diferent notions of marketplace reward
from user sessions. These observations signify the crucial importance of the choice of the
empirical session value distribution in shaping the properties and the generalization behavior
of the search ranking policy.</p>
          <p>We do this by contrasting the performance of ranking policies trained on expected reward
estimates corresponding to extreme choices of the empirical session value distribution.
Specifically, we compare a policy  , corresponding to a scoring function , trained on a simple
engagement-driven expected reward estimate based on the session value distribution P^()
against a policy   , corresponding to a scoring function  , trained on a simple
acquisitionfocused expected reward estimate based on the session value distribution P^ (). We observe
meaningfully diferent performance trade-ofs between these extreme policies with respect to
the primary notions of marketplace reward in an online randomized controlled experiment.
Table 1 summarizes the key observations on the average efect size Δ (  ,   ) between
engagement focused policy   and acquisition focused policy   , with respect to diferent
cumulative metrics , over the global session trafic . The main takeaway from these
observations is that the engagement focused policy  , on the one hand, drives significantly higher
share of search sessions with at least one click(&gt; +3%), and on the other hand, leads to a
significant drop in the share of search sessions with at least one purchase( &lt; − 2%).</p>
          <p>It is interesting to note, however, that this drop is largely due to a significant loss in the
number of bought items in search sessions with lower price intent, which usually take less
exploration and browsing to identify and pinpoint the desirable item to purchase. Since the
engagement-driven policy is more efective in driving success events with higher economic
value in sessions that require more browsing efort, it can compensate for the revenue loss due
to lower purchases in lower price intent segments, leading to an overall neutral efect size in
total revenue.</p>
          <p>
            In order to explore the fundamental trade-ofs, highlighted in our online experiment, between
diferent notions of marketplace expected reward across heterogeneous price intents in more
depth, we build simple hybrid policies corresponding to a mixture of the engagement-based
and acquisition based objectives. Specifically, we build a simple policy via a simple convex
combination of the extreme polices
  = argSort((1 −  )  +   ),
(16)
where   refers to the balanced ranking policy obtained via a linear combination of the scoring
functions of the engagement focused policy,   and acquisition focused policy   , for some
 ∈ [
            <xref ref-type="bibr" rid="ref1">0, 1</xref>
            ]. The parameterized policies   behave similarly to a policy trained on a corresponding
mixture session value distribution (1 −  )P^ () +  P^().
          </p>
          <p>Due to the scarcity of online experimentation trafic, we only conduct counterfactual
ofpolicy evaluations for these parameterized policies. While our counterfactual estimates are
largely aligned, at least directionally, with the measured efect sizes in online experiments, we
point out that all counterfactual of-policy evaluations are fundamentally limited having access
only to snapshots of the users’ behavior in the logged sessions. In particular, if the logging
policy is substantially diferent from the target policy to be evaluated, the ofline evaluation
metrics could be very biased.</p>
          <p>Figure 1 highlights the essential trade ofs between diferent expected reward estimates 
from logged data ^, with the acquisition focused policy as the baseline
Δ^ (  ,   ).</p>
          <p>(17)
Biasing the training objective heavily on one extreme, leads to significant drops in the estimated
reward corresponding to the other extreme. As the contribution of the engagement-focused
policy increases, by increasing  &gt; 0, we estimate higher expected number of engagements,
with a saturation point of diminishing return, after which a sharp drop in the expected number
of purchases is observed. Interestingly the estimated expected revenue is convex as a function
of  , which we will discuss in our subsequent research focused on value-aware objectives.</p>
          <p>Next, we explore the observed trade-ofs in the global analysis above across heterogeneous
segments ^ corresponding to diferent price intent segments, where the attribution of a session
to a value bucket is done with respect to the price of the purchased items. Figure 2 and 3 show
the lift in estimated expected number of engagements E^[C] and estimated expected number of
engagements E^[P], respectively, for the hybrid policy   across value segments ^ with the
acquisition focused policy as the baseline.</p>
          <p>We clearly see that the extreme acquisition focused policy performs poorly in terms of the
expected number of engagements, across all segments, with particularly larger efects sizes in
high value price intents that require more exploration. We also observe that, as  increases, the
lift in expected clicks Δ^ (E^  [C], E^  [C]) increases, with a saturation point in lower price
segments(which is in fact an inflation point for low price intent segments). On the contrary,
biasing the policy towards the engagement-focused policy, by setting  close to 1, leads to a
meaningful drop in the expected number of purchases, Δ^ (E^  [P], E^  [P]), particularly in
low value price segments, which constitute a high proportion of the overall number of purchases.
An interesting observation, however, is that focusing more on an engagement-based objective
is helpful for driving even higher expected number of purchases in higher price segments. We
leave deeper dives on the observed trade ofs for future work.</p>
        </sec>
        <sec id="sec-4-3-2">
          <title>4.3.2. Tight Attribution of Purchase Events</title>
          <p>In order to highlight the significance of the reward attribution scheme within a user session,
we contrast the generalization performance of policies trained with respect to extreme choices
of the query contribution distribution P^ (|≺ ). Specifically, we contrast the performance
of a policy   trained on a session value distribution with a tight attribution of success events
to search events, similar to the last touch scheme discussed earlier, to a policy   trained with
respect to a loose multi-touch attribution of success events to search events, similar to the all
touch scheme discussed earlier. While the overall cumulative rewards do not show sizable
performance trade-ofs between the two extreme policies, we highlight substantially diferent
efect sizes across diferent purchase price intents. Table 2 clearly demonstrates that a loose
attribution scheme for the empirical query contribution distribution helps with a significant
improved generalization in higher price intent sessions, which tend to be more exploratory and
involve multiple ranking intervention touch points.</p>
        </sec>
        <sec id="sec-4-3-3">
          <title>4.3.3. Purchase Price in Marketplace Reward</title>
          <p>Finally, in order to highlight the significance of incorporating the purchase price in the session
value distribution for a revenue focused marketplace reward, we highlight the results from an
online AB test on a simple value-aware policy  v in contrast to a value oblivious acquisition
driven policy  v. The primary diference between the two policies is the empirical session value
distribution P^() in the corresponding expected reward estimate for the training objective,
which depends also on the price of the sold item in the case of  v, and all the other importance
weighting distributions and per query reward estimates are the same. In Table 3, we clearly see
a significant shift in the distribution of the accumulated revenue across price intent segments,
which signifies the importance of taking into account the sparsity of purchase events from
higher price intent sessions to avoid the selection bias incurred by the value oblivious policy,
which is biased towards lower price intent segments, where sessions with purchase events are
abundant.</p>
        </sec>
      </sec>
    </sec>
    <sec id="sec-5">
      <title>5. Concluding Remarks</title>
      <p>We established an explicit connection between the training objective for the search ranking
policy and the key performance metrics of a two-sided commerce marketplace by building
efective empirical estimates of the marketplace reward from observation data. Specifically,
we highlighted the significance of the search context value distribution in building efective
empirical estimates of the marketplace expected reward to inform the training and evaluation of
the search ranking policy. We showcased empirical results from online randomized controlled
experiments and counterfactual evaluations in a major e-commerce platform demonstrating the
fundamental trade-ofs governed by extreme choices of the context value distribution.
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