Online Algorithms for Matching Platforms with Multi-Channel Traffic

BSTRACTTwo-sided platforms rely on their recommendation algorithms to help their visitors successfully find a match. However, on platforms such as VolunteerMatch - which has facilitated tens of millions of connections between volunteers and nonprofits - a sizable fraction of website traffic arrives directly to a nonprofit's volunteering page via an external link, thus bypassing the platform's recommendation algorithm. We study how such platforms should account for this external traffic in the design of their recommendation engines, given the goal of maximizing the total number of successful matches. We model the platform's problem as a special case of online matching with stochastic rewards, where (using VolunteerMatch as a motivating example) volunteers arrive sequentially and (probabilistically) match with one opportunity, each of which has finite need for volunteers. In our framework, external traffic is interested only in their targeted opportunity; in contrast, internal traffic may be interested in many opportunities, and the platform's online algorithm selects which opportunity to recommend. In evaluating the performance of different algorithms, we take a worst-case analysis approach, yet we refine the notion of the competitive ratio by parameterizing it based on the amount of external traffic. After demonstrating the shortcomings of a commonly-used algorithm which is optimal in the absence of external traffic, we introduce a new algorithm - Adaptive Capacity (AC) - which accounts for matches differently based on whether they originate from internal or external traffic. We establish a lower bound on AC's competitive ratio that is increasing in the amount of external traffic, and we compare our lower bound to a parameterized upper bound on the competitive ratio of any online algorithm. We find that (in certain parameter regimes) AC is near-optimal regardless of the amount of external traffic, even though it does not know this amount a priori. Our analysis utilizes a path-based, pseudo-rewards approach, which we further generalize to settings where the platform can recommend a ranked set of opportunities. Beyond our theoretical results, we demonstrate the strong performance of AC in a case study motivated by VolunteerMatch data.