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How do you test in a marketplace / network with SUTVA violations?

hard

Answer

  • (1) Cluster randomization (randomize at community / graph-community level so spillovers stay within cluster).
  • (2) Switchback experiments (turn treatment on/off over time, randomize periods).
  • (3) Ego-cluster tests (treat user + their neighbors together).
  • (4) Two-sided experiments (rider-side + driver-side simultaneously in Uber).
  • (5) Structural models to extrapolate to full launch.
  • Standard practice at Uber, Lyft, Airbnb, DoorDash.
  • Naive user-level tests bias effect estimates.
Check yourself — multiple choice
  • Ignore SUTVA
  • Cluster / switchback / ego-cluster / two-sided / structural — user-level A/B biased in marketplaces & networks
  • Only bigger n
  • Random

Network / marketplace A/B: cluster / switchback / ego / two-sided / structural.

#ab-testing#causal-inference

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