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Related papers: Price Experimentation and Interference

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Large-scale randomized experiments, sometimes called A/B tests, are increasingly prevalent in many industries. Though such experiments are often analyzed via frequentist $t$-tests, arguably such analyses are deficient: $p$-values are hard…

Methodology · Statistics 2020-03-27 F. Richard Guo , James McQueen , Thomas S. Richardson

As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…

Computer Science and Game Theory · Computer Science 2017-08-31 Abbas Kazerouni , Benjamin Van Roy

Contemporary scientific research is a distributed, collaborative endeavor, carried out by teams of researchers, regulatory institutions, funding agencies, commercial partners, and scientific bodies, all interacting with each other and…

Methodology · Statistics 2024-02-09 Stephen Bates , Michael I. Jordan , Michael Sklar , Jake A. Soloff

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

In industry, online randomized controlled experiment (a.k.a. A/B experiment) is a standard approach to measure the impact of a causal change. These experiments have small treatment effect to reduce the potential blast radius. As a result,…

Econometrics · Economics 2025-05-29 Tanmoy Das , Dohyeon Lee , Arnab Sinha

Recent research in causal inference under network interference has explored various experimental designs and estimation techniques to address this issue. However, existing methods, which typically rely on single experiments, often reach a…

Methodology · Statistics 2025-03-10 Qianyi Chen , Bo Li

Marketers often use A/B testing as a tool to compare marketing treatments in a test stage and then deploy the better-performing treatment to the remainder of the consumer population. While these tests have traditionally been analyzed using…

Applications · Statistics 2020-12-03 Elea McDonnell Feit , Ron Berman

In lending, where prices are specific to both customers and products, having a well-functioning personalized pricing policy in place is essential to effective business making. Typically, such a policy must be derived from observational…

Machine Learning · Computer Science 2023-09-08 Christopher Bockel-Rickermann , Sam Verboven , Tim Verdonck , Wouter Verbeke

Randomized controlled experiments assess new policy impacts on performance metrics to inform launch decisions. Traditional approaches evaluate metrics independently despite correlations, and mixed results (e.g., positive revenue impact,…

Applications · Statistics 2026-01-29 Hoiyi Ng , Guido Imbens

A statistical decision problem is hidden in the core of option pricing. A simple form for the price C of a European call option is obtained via the minimum Bayes risk, R_B, of a 2-parameter estimation problem, thus justifying calling C…

Pricing of Securities · Quantitative Finance 2013-04-19 Yannis G. Yatracos

The estimation of risk measures recently gained a lot of attention, partly because of the backtesting issues of expected shortfall related to elicitability. In this work we shed a new and fundamental light on optimal estimation procedures…

Risk Management · Quantitative Finance 2017-08-25 Marcin Pitera , Thorsten Schmidt

Two-sided marketplaces are standard business models of many online platforms (e.g., Amazon, Facebook, LinkedIn), wherein the platforms have consumers, buyers or content viewers on one side and producers, sellers or content-creators on the…

Social and Information Networks · Computer Science 2021-10-28 Preetam Nandy , Divya Venugopalan , Chun Lo , Shaunak Chatterjee

Before A/B testing online a new version of a recommender system, it is usual to perform some offline evaluations on historical data. We focus on evaluation methods that compute an estimator of the potential uplift in revenue that could…

Machine Learning · Statistics 2018-01-23 Alexandre Gilotte , Clément Calauzènes , Thomas Nedelec , Alexandre Abraham , Simon Dollé

In many markets, like electricity or cloud computing markets, providers incur large costs for keeping sufficient capacity in reserve to accommodate demand fluctuations of a mostly fixed user base. These costs are significantly affected by…

Computer Science and Game Theory · Computer Science 2020-04-07 Ludwig Dierks , Sven Seuken

Motivated by the prevalence of prediction problems in the economy, we study markets in which firms sell models to a consumer to help improve their prediction. Firms decide whether to enter, choose models to train on their data, and set…

Theoretical Economics · Economics 2025-10-10 Krishna Dasaratha , Juan Ortner , Chengyang Zhu

Pricing decisions of companies require an understanding of the causal effect of a price change on the demand. When real-life pricing experiments are infeasible, data-driven decision-making must be based on alternative data sources such as…

Applications · Statistics 2024-07-03 Lauri Valkonen , Santtu Tikka , Jouni Helske , Juha Karvanen

We develop a theoretical framework for sample splitting in A/B testing environments, where data for each test are partitioned into two splits to measure methodological performance when the true impacts of tests are unobserved. We show that…

Econometrics · Economics 2026-03-24 Ryan Kessler , James McQueen , Miikka Rokkanen

Motivated by the widespread adoption of large-scale A/B testing in industry, we propose a new experimentation framework for the setting where potential experiments are abundant (i.e., many hypotheses are available to test), and observations…

Machine Learning · Statistics 2018-05-31 Sven Schmit , Virag Shah , Ramesh Johari

Experimentation platforms in industry must often deal with customer trust issues. Platforms must prove the validity of their claims as well as catch issues that arise. As a central quantity estimated by experimentation platforms, the…

Methodology · Statistics 2025-11-21 Kedar Karhadkar , Jack Klys , Daniel Ting , Artem Vorozhtsov , Houssam Nassif

We achieve two primary goals in this work. First, we propose a flexible algorithm that can simulate various scenarios of state/government intervention. Secondly, we analyze the scenario exhibiting the critical behavior of the market of…

Physics and Society · Physics 2021-06-30 Michal Chorowski , Ryszard Kutner