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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

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 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

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

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

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 marketplaces frequently run pricing experiments in environments where users choose from a list of items. In these settings, items compete for users' limited attention and demand, creating interference among items within a list:…

Econometrics · Economics 2026-03-17 Mahyar Habibi , Zahra Khanalizadeh , Negar Ziaeian

This paper studies the measurement of advertising effects on online platforms when parallel experimentation occurs, that is, when multiple advertisers experiment concurrently. It provides a framework that makes precise how parallel…

General Economics · Economics 2024-03-01 Caio Waisman , Navdeep S. Sahni , Harikesh S. Nair , Xiliang Lin

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

Extensive research shows that consumers are generally averse to price discrimination. However, instruments of differential pricing can benefit consumer surplus and alleviate inequity through targeted price discounts. This paper examines how…

General Economics · Economics 2024-04-05 Alexander Erlei , Mattheus Brenig , Nils Engelbrecht

After years of speculation, price discrimination in e-commerce driven by the personal information that users leave (involuntarily) online, has started attracting the attention of privacy researchers, regulators, and the press. In our…

Computers and Society · Computer Science 2013-07-18 Jakub Mikians , László Gyarmati , Vijay Erramilli , Nikolaos Laoutaris

Bipartite experiments are a recent object of study in causal inference, whereby treatment is applied to one set of units and outcomes of interest are measured on a different set of units. These experiments are particularly useful in…

We consider situations where consumers are aware that a statistical model determines the price of a product based on their observed behavior. Using a novel experiment varying the context similarity between participant data and a product, we…

General Economics · Economics 2024-11-14 Inácio Bó , Li Chen , Rustamdjan Hakimov

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

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

Estimating the effects of interventions in networks is complicated when the units are interacting, such that the outcomes for one unit may depend on the treatment assignment and behavior of many or all other units (i.e., there is…

Methodology · Statistics 2014-08-15 Dean Eckles , Brian Karrer , Johan Ugander

In the past decade, the technology industry has adopted online randomized controlled experiments (a.k.a. A/B testing) to guide product development and make business decisions. In practice, A/B tests are often implemented with increasing…

Methodology · Statistics 2023-03-27 Kevin Han , Shuangning Li , Jialiang Mao , Han Wu

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…

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 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
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