EconBase
← All papers

Experimenting in Equilibrium

Stefan Wager, Kuang Xu

arXiv 6 Mar 2019 · Mathematics — Optimization

arXiv:1903.02124 · PDF · Extracted main text

Abstract

Classical approaches to experimental design assume that intervening on one unit does not affect other units. There are many important settings, however, where this non-interference assumption does not hold, as when running experiments on supply-side incentives on a ride-sharing platform or subsidies in an energy marketplace. In this paper, we introduce a new approach to experimental design in large-scale stochastic systems with considerable cross-unit interference, under an assumption that the interference is structured enough that it can be captured via mean-field modeling. Our approach enables us to accurately estimate the effect of small changes to system parameters by combining unobstrusive randomization with lightweight modeling, all while remaining in equilibrium. We can then use these estimates to optimize the system by gradient descent. Concretely, we focus on the problem of a platform that seeks to optimize supply-side payments p in a centralized marketplace where different suppliers interact via their effects on the overall supply-demand equilibrium, and show that our approach enables the platform to optimize p in large systems using vanishingly small perturbations.

Citation extraction

78
references
122
in-text mentions
78
distinct cited
3
self-citations
25,892
main-text words

appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Michael G Hudgens and M Elizabeth Halloran (2008) Toward causal inference with interference1.00073100%
2Sarah Baird, J Aislinn Bohren, Craig McIntosh, and Berk Özler (2018) Optimal design of experiments in the presence of interference1.00053100%
3Sachin Adlakha, Ramesh Johari, and Gabriel Y Weintraub (2015) Equilibria of dynamic games with many players: Existence, approximation, and market structure0.84333100%
4Hugo A Hopenhayn (1992) Entry, exit, and firm dynamics in long run equilibrium0.84333100%
5Gabriel Y Weintraub, C Lanier Benkard, and Benjamin Van Roy (2008) Markov perfect industry dynamics with many firms0.84333100%
6Michael P Leung (2020) Treatment and spillover effects under network interference0.81142100%
7Peter M Aronow and Cyrus Samii (2017) Estimating average causal effects under general interference, with application to a social network experiment0.73732100%
8Susan Athey, Dean Eckles, and Guido W Imbens (2018) Exact p-values for network interference0.73732100%
9Guillaum W Basse, Avi Feller, and Panos Toulis (2019) Randomization tests of causal effects under interference0.73732100%
10Dean Eckles, Brian Karrer, and Johan Ugander (2017) Design and analysis of experiments in networks: Reducing bias from interference0.73732100%

Showing the top 10 of 78 scored citations.