Bi-Level Contextual Bandits for Individualized Resource Allocation under Delayed Feedback

arXiv — cs.LGMonday, November 17, 2025 at 5:00:00 AM
The article discusses a novel bi-level contextual bandit framework aimed at individualized resource allocation in high-stakes domains such as education, employment, and healthcare. This framework addresses the challenges of delayed feedback, hidden heterogeneity, and ethical constraints, which are often overlooked in traditional learning-based allocation methods. The proposed model optimizes budget allocations at the subgroup level while identifying responsive individuals using a neural network trained on observational data.
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