Markov decision processes (MDPs) often suffer from the sensitivity issue under model ambiguity. In recent years, robust MDPs have emerged as an effective framework to overcome this challenge. Distributionally robust MDPs extend the robust MDP framework by incorporating distributional information of the uncertain model parameters to alleviate the conservative nature of robust MDPs.

Hedonic Games (HGs) are a classical framework modeling coalition formation of strategic agents guided by their individual preferences.

Consider a recommendation platform that interacts with a finite set of users in an online fashion. Users arrive at the platform and receive a recommendation.