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A/B tests serve the purpose of reliably identifying the effect of changes introduced in online services. It is common for online platforms to run a large number of simultaneous experiments by splitting incoming user traffic randomly in…

Machine Learning · Computer Science 2022-10-18 Alexander Buchholz , Vito Bellini , Giuseppe Di Benedetto , Yannik Stein , Matteo Ruffini , Fabian Moerchen

It is standard practice in online retail to run pricing experiments by randomizing at the article-level, i.e. by changing prices of different products to identify treatment effects. Due to customers' cross-price substitution behavior, such…

Applications · Statistics 2024-02-23 Lars Roemheld , Justin Rao

We consider a causal inference problem frequently encountered in online advertising systems, where a publisher (e.g., Instagram, TikTok) interacts repeatedly with human users and advertisers by sporadically displaying to each user an…

Machine Learning · Statistics 2026-02-06 Jia Yuan Yu

Online marketplace designers frequently run A/B tests to measure the impact of proposed product changes. However, given that marketplaces are inherently connected, total average treatment effect estimates obtained through Bernoulli…

Methodology · Statistics 2020-04-28 David Holtz , Ruben Lobel , Inessa Liskovich , Sinan Aral

When online sellers use AI learning algorithms to automatically compete on e-commerce platforms, there is concern that they will learn to coordinate on higher than competitive prices. However, this concern was primarily raised in…

General Economics · Economics 2025-11-03 Hangcheng Zhao , Ron Berman

We present the results of a study designed to measure the impact of interruptive advertising on consumers willingness to pay for products bearing the advertiser's brand. Subjects participating in a controlled experiment were exposed to ads…

Computers and Society · Computer Science 2020-05-15 Alessandro Acquisti , Sarah Spiekermann

There are a large number of competing ADXs on the Internet. It is the primary demand to identify and compare the advertising performance of ADX. Traditional method relies on training artificial online personas to represent behavioral…

Computers and Society · Computer Science 2018-03-19 Nanxi Huang , Chunxi Li , Yongxiang Zhao , Yuchun Guo

Causally identifying the effect of digital advertising is challenging, because experimentation is expensive, and observational data lacks random variation. This paper identifies a pervasive source of naturally occurring, quasi-experimental…

Econometrics · Economics 2022-02-18 George Gui , Harikesh Nair , Fengshi Niu

Online A/B testing is widely used in the internet industry to inform decisions on new feature roll-outs. For online marketplaces (such as advertising markets), standard approaches to A/B testing may lead to biased results when buyers…

Online advertisements have become one of today's most widely used tools for enhancing businesses partly because of their compatibility with A/B testing. A/B testing allows sellers to find effective advertisement strategies such as ad…

Machine Learning · Computer Science 2020-10-22 Akira Matsui , Daisuke Moriwaki

This paper investigates decision-making in A/B experiments for online platforms and marketplaces. In such settings, due to constraints on inventory, A/B experiments typically lead to biased estimators because of *interference* between…

Methodology · Statistics 2025-08-26 Ramesh Johari , Hannah Li , Anushka Murthy , Gabriel Y. Weintraub

Online controlled experiments are the primary tool for measuring the causal impact of product changes in digital businesses. It is increasingly common for digital products and services to interact with customers in a personalised way. Using…

Methodology · Statistics 2021-07-02 C. H. Bryan Liu , Benjamin Paul Chamberlain

Network interference has attracted significant attention in the field of causal inference, encapsulating various sociological behaviors where the treatment assigned to one individual within a network may affect the outcomes of others, such…

Machine Learning · Computer Science 2025-02-11 Zhiheng Zhang , Zichen Wang

Many online experiments exhibit dependence between users and items. For example, in online advertising, observations that have a user or an ad in common are likely to be associated. Because of this, even in experiments involving millions of…

Methodology · Statistics 2017-10-26 Eytan Bakshy , Dean Eckles

Online experimentation is at the core of Booking.com's customer-centric product development. While randomised controlled trials are a powerful tool for estimating the overall effects of product changes on business metrics, they often fall…

Human-Computer Interaction · Computer Science 2018-10-31 Bahattin Tolga Öztan , Zoé van Havre , Caio Gomes , Lukas Vermeer

Digital technology organizations routinely use online experiments (e.g. A/B tests) to guide their product and business decisions. In e-commerce, we often measure changes to transaction- or item-based business metrics such as Average Basket…

Applications · Statistics 2023-04-18 C. H. Bryan Liu , Emma J. McCoy

In an A/B test, the typical objective is to measure the total average treatment effect (TATE), which measures the difference between the average outcome if all users were treated and the average outcome if all users were untreated. However,…

Applications · Statistics 2020-04-28 David Holtz , Sinan Aral

Online recommendation and advertising are two major income channels for online recommendation platforms (e.g. e-commerce and news feed site). However, most platforms optimize recommending and advertising strategies by different teams…

Information Retrieval · Computer Science 2020-06-22 Xiangyu Zhao , Xudong Zheng , Xiwang Yang , Xiaobing Liu , Jiliang Tang

Two-sided platforms are central to modern commerce and content sharing and often utilize A/B testing for developing new features. While user-side experiments are common, seller-side experiments become crucial for specific interventions and…

Methodology · Statistics 2024-02-12 Zhihua Zhu , Zheng Cai , Liang Zheng , Nian Si

Randomized experiments with treatment and control groups are an important tool to measure the impacts of interventions. However, in experimental settings with one-sided noncompliance extant empirical approaches may not produce the estimands…

Econometrics · Economics 2025-04-25 Caio Waisman , Brett R. Gordon
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