Explore-exploit tradeoff

Abstract

The exploration, exploitation trade-off is a dilemma we frequently face in choosing between options. Should you choose what you know and get something close to what you expect (‘exploit’) or choose something you aren’t sure about and possibly learn more (‘explore’)? This happens all the time in everyday life — favourite restaurant, or the new one?; current job, or hunt around?; normal route home, or try another?; and many more. You sacrifice one to have the other — it’s a trade-off. Which of these you should choose depends on how costly the information about the consequences is to gain, how long you’ll be able to take advantage of it, and how large the benefit to you is.