Definition:
Traffic allocation refers to how visitor traffic is distributed across different price options during price experiments.
Pricing algorithms may initially distribute traffic evenly and gradually shift traffic toward better-performing prices.
Why It Matters:
- Ensures reliable price testing results.
- Allows algorithms to learn from customer behavior.
- Reduces risk during experimentation
Example:
During a price test with three price options, the system initially sends equal traffic to each price. Over time, more visitors are shown the price generating the highest profit per visitor.