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Interference between treated and untreated units is a source of bias in marketplace experiments. In this paper, we specifically consider pricing interventions, in which a platform seeks to adjust base pricing levels at the marketplace level…

Optimization and Control · Mathematics 2025-02-27 Arthur Delarue , Kleanthis Karakolios

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 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

Randomized experiments have become a standard tool in economics. In analyzing randomized experiments, the traditional approach has been based on the Stable Unit Treatment Value (SUTVA: \cite{rubin}) assumption which dictates that there is…

Econometrics · Economics 2020-12-29 Bora Kim

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

In the online ride-hailing pricing context, companies often conduct randomized controlled trials (RCTs) and utilize uplift models to assess the effect of discounts on customer orders, which substantially influences competitive market…

Methodology · Statistics 2025-09-24 Kairong Han , Weidong Huang , Taiyang Zhou , Peng Zhen , Kun Kuang

AI models are often evaluated based on their ability to predict the outcome of interest. However, in many AI for social impact applications, the presence of an intervention that affects the outcome can bias the evaluation. Randomized…

Machine Learning · Computer Science 2025-11-18 Winston Chen , Michael W. Sjoding , Jenna Wiens

A/B tests, also known as randomized controlled experiments (RCTs), are the gold standard for evaluating the impact of new policies, products, or decisions. However, these tests can be costly in terms of time and resources, potentially…

Machine Learning · Statistics 2025-01-03 Shima Nassiri , Mohsen Bayati , Joe Cooprider

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

A central obstacle in the objective assessment of treatment effect (TE) estimators in randomized control trials (RCTs) is the lack of ground truth (or validation set) to test their performance. In this paper, we propose a novel…

Randomised Controlled Trials (RCTs) are the gold standard for estimating treatment effects across many fields of science. Technology companies have adopted A/B-testing methods as a modern RCT counterpart, where end-users are randomly…

Social and Information Networks · Computer Science 2024-09-20 Olivier Jeunen

We develop an analytical framework to study experimental design in two-sided marketplaces. Many of these experiments exhibit interference, where an intervention applied to one market participant influences the behavior of another…

Methodology · Statistics 2021-09-28 Ramesh Johari , Hannah Li , Inessa Liskovich , Gabriel Weintraub

In randomized experiments, the classic Stable Unit Treatment Value Assumption (SUTVA) posits that the outcome for one experimental unit is unaffected by the treatment assignments of other units. However, this assumption is frequently…

Methodology · Statistics 2024-11-18 Yiming Jiang , He Wang

Participation incentives is a well-known issue inhibiting randomized controlled trials (RCTs) in medicine, as well as a potential cause of user dissatisfaction for RCTs in online platforms. We frame this issue as a non-standard…

Computer Science and Game Theory · Computer Science 2026-01-13 Yingkai Li , Aleksandrs Slivkins

In this paper, we examine the biases that arise when firms run A/B tests on continuous parameters to estimate global treatment effects on performance metrics of interest; we particularly focus on price experiments to measure the price…

Methodology · Statistics 2026-01-22 Ramesh Johari , Orrie B. Page , Gabriel Y. Weintraub

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

Randomized controlled trials often suffer from interference, a violation of the Stable Unit Treatment Values Assumption (SUTVA) in which a unit's treatment assignment affects the outcomes of its neighbors. This interference causes bias in…

Methodology · Statistics 2025-02-06 Vydhourie Thiyageswaran , Tyler McCormick , Jennifer Brennan

Experiments in online platforms frequently suffer from network interference, in which a treatment applied to a given unit affects outcomes for other units connected via the platform. This SUTVA violation biases naive approaches to…

Social and Information Networks · Computer Science 2025-03-05 Tianyi Peng , Naimeng Ye , Andrew Zheng

It is increasingly common in digital environments to use A/B tests to compare the performance of recommendation algorithms. However, such experiments often violate the stable unit treatment value assumption (SUTVA), particularly SUTVA's "no…

The randomized controlled trial (RCT) is the gold standard for estimating the average treatment effect (ATE) of a medical intervention but requires 100s-1000s of subjects, making it expensive and difficult to implement. While a cross-over…

Signal Processing · Electrical Eng. & Systems 2023-05-10 Sayeri Lala , Niraj K. Jha
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