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In reflection, it’s a good idea. Consumer preferences are hard to gauge; there isn’t much of a feedback loop right now with restaurants beyond you either have business and are sustainable, or you don’t and lose it all. This is comparable to YouTube giving you different advertisements, but that these ads (restaurants) are really expensive to run and experiment with. Virtual restaurants essentially bring A/B testing from the digital realm to the physical one. They provide and shorten the feedback loop, lowering the cost of exploration by centralizing and by economies of scale; and resulting in greater exploitation (not in the economic sense but in the multi armed bandits framework).



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