Webinars
MSI Webinar: A Bias Correction Approach for Interference in Ranking Experiments
Online marketplaces use ranking algorithms to determine the rank-ordering of items sold on their websites. Standard practice is to determine the optimal algorithm using A/B tests, but this approach may be misleading if outcomes of one treatment depend on treatments to the rest of the population, leading to incorrect inference and sub-optimal decisions. In this webinar, Professor Ali Goli will present a framework to characterize the Total Average Treatment Effect (TATE) of a ranking algorithm in an A/B test and demonstrate the presence of interference bias. His research also proposes a novel solution that can recover the true TATE of a ranking algorithm based on past A/B tests, even if those tests suffer from interference issues. This approach can be used with data from standard A/B tests readily available to many firms – the existing data from previous tests – to de-bias TATE estimates and serve as the basis for decisions going forward. Attendees will come away with an understanding of the interference issues present in commonly used rankings tests, and a strategy for de-biasing future tests.
speaker
Ali Goli is an Assistant Professor of Marketing at the Michael G. Foster School of Business, University of Washington. His research focuses on marketing and public policy, field experiments on two-sided platforms, advertising, and online education. He earned his Ph.D. from the University of Chicago Booth School of Business.