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Two-sided marketplace platforms often run experiments to test the effect of an intervention before launching it platform-wide. A typical approach is to randomize individuals into the treatment group, which receives the intervention, and the…

Methodology · Statistics 2021-04-27 Hannah Li , Geng Zhao , Ramesh Johari , Gabriel Y. Weintraub

The importance of Facebook advertising has risen dramatically in recent years, with the platform accounting for almost 20% of the global online ad spend in 2017. An important consideration in advertising is incrementality: how much of the…

Methodology · Statistics 2018-07-12 C. H. Bryan Liu , Elaine M. Bettaney , Benjamin Paul Chamberlain

Competition between traditional platforms is known to improve user utility by aligning the platform's actions with user preferences. But to what extent is alignment exhibited in data-driven marketplaces? To study this question from a…

Computer Science and Game Theory · Computer Science 2023-01-18 Meena Jagadeesan , Michael I. Jordan , Nika Haghtalab

Experiments on online marketplaces and social networks suffer from interference, where the outcome of a unit is impacted by the treatment status of other units. We propose a framework for modeling interference using a ubiquitous deployment…

Methodology · Statistics 2023-08-21 Ariel Boyarsky , Hongseok Namkoong , Jean Pouget-Abadie

Online experimentation, also known as A/B testing, is the gold standard for measuring product impacts and making business decisions in the tech industry. The validity and utility of experiments, however, hinge on unbiasedness and sufficient…

Applications · Statistics 2020-12-17 Min Liu , Jialiang Mao , Kang Kang

Online user-generated content platforms allocate billions of dollars of promotional traffic through algorithms in two-sided marketplaces. To evaluate updates to these algorithms, platforms frequently rely on creator-side randomized…

Econometrics · Economics 2026-03-10 Ruohan Zhan , Shichao Han , Yuchen Hu , Zhenling Jiang

Online advertising has been the major monetization approach for Internet companies. Advertisers invest budgets to bid for real-time impressions to gain direct and indirect returns. Existing works have been concentrating on optimizing direct…

Computer Science and Game Theory · Computer Science 2019-03-12 Hao Liu , Yunze Li , Qinyu Cao , Guang Qiu , Jiming Chen

Purpose: We model group advertising decisions, which are the collective decisions of every single advertiser within the set of advertisers who are competing in the same auction or vertical industry, and examine resulting market outcomes,…

Artificial Intelligence · Computer Science 2022-03-07 Yanwu Yang , Xin Li , Bernard J. Jansen , Daniel Zeng

In e-commerce platforms, sponsored and non-sponsored content are jointly displayed to users and both may interactively influence their engagement behavior. The former content helps advertisers achieve their marketing goals and provides a…

We introduce pricing formulas for competition and collusion models of two-sided markets with an outside option. For the competition model, we find conditions under which prices and consumer surplus may increase or decrease if the outside…

General Economics · Economics 2025-05-12 Cristian Chica , Yinglong Guo , Gilad Lerman

Cross-group externalities and network effects in two-sided platform markets shape market structure and competition policy, and are the subject of extensive study. Less understood are the within-group externalities that arise when the…

Theoretical Economics · Economics 2020-11-10 Quitzé Valenzuela-Stookey

With the extensive use of digital devices, online experimental platforms are commonly used to conduct experiments to collect data for evaluating different variations of products, algorithms, and interface designs, a.k.a., A/B tests. In…

Methodology · Statistics 2024-07-09 Qiong Zhang , Lulu Kang , Xinwei Deng

We consider the design of experiments to evaluate treatments that are administered by self-interested agents, each seeking to achieve the highest evaluation and win the experiment. For example, in an advertising experiment, a company wishes…

Methodology · Statistics 2015-09-18 Panos Toulis , David C. Parkes , Elery Pfeffer , James Zou

"Creativity is the heart and soul of advertising services". Effective creatives can create a win-win scenario: advertisers can reach target users and achieve marketing objectives more effectively, users can more quickly find products of…

Information Retrieval · Computer Science 2023-12-21 Zhiguang Yang , Lu Wang , Chun Gan , Liufang Sang , Haoran Wang , Wenlong Chen , Jie He , Changping Peng , Zhangang Lin , Jingping Shao

Evaluating the causal effect of recommendations is an important objective because the causal effect on user interactions can directly leads to an increase in sales and user engagement. To select an optimal recommendation model, it is common…

Machine Learning · Computer Science 2021-07-16 Masahiro Sato

We study a dynamic market setting where an intermediary interacts with an unknown large sequence of agents that can be either sellers or buyers: their identities, as well as the sequence length $n$, are decided in an adversarial, online…

Computer Science and Game Theory · Computer Science 2017-03-29 Yiannis Giannakopoulos , Elias Koutsoupias , Philip Lazos

Digital platforms use recommendations to facilitate exchanges between platform actors, such as trade between buyers and sellers. Aiming to protect consumers and guarantee fair competition on platforms, legislators increasingly require that…

General Economics · Economics 2024-03-01 Lukas Jürgensmeier , Bernd Skiera

The power of digital platforms is at the center of major ongoing policy and regulatory efforts. To advance existing debates, we designed and executed an experiment to measure the performative power of online search providers. Instantiated…

Computers and Society · Computer Science 2024-11-01 Celestine Mendler-Dünner , Gabriele Carovano , Moritz Hardt

Online platforms regularly conduct randomized experiments to understand how changes to the platform causally affect various outcomes of interest. However, experimentation on online platforms has been criticized for having, among other…

Machine Learning · Computer Science 2022-05-12 Smitha Milli , Luca Belli , Moritz Hardt

Online labor markets have great potential as platforms for conducting experiments, as they provide immediate access to a large and diverse subject pool and allow researchers to conduct randomized controlled trials. We argue that online…

Human-Computer Interaction · Computer Science 2025-03-19 John J. Horton , David G. Rand , Richard J. Zeckhauser