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Pricing Experiments in Matching Marketplaces under Interference: Designs and Estimators
Optimization and Control · Submitted 26 Feb 2025
abstract compiled · 2026-09-23 · no language-model review
The authors' main claim Bias can be reduced by using the ``shadow price estimator'', which relies on the optimal dual solution of the platform's supply-demand matching problem -- especially when the platform chooses to ignore pricing differences at matching time.
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The abstract, sentence by sentence
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 in order to increase demand. In a matching marketplace, this type of experiment leads to a crucial design question: should the platform match treated and untreated units differently because they paid different prices? We find that standard estimation techniques are biased, but the sign of this bias depends strongly on this design choice. Bias can be reduced by using the ``shadow price estimator'', which relies on the optimal dual solution of the platform's supply-demand matching problem -- especially when the platform chooses to ignore pricing differences at matching time. We validate our findings both theoretically in a fluid limit setting, and numerically in a finite-sample setting.
background contribution method result interpretation main claim
| # | sentence | role | the authors' own work | states the main conclusion | strength |
|---|---|---|---|---|---|
| s0 | Interference between treated and untreated units is a source of bias in marketplace experiments. | background 1.00 | 0.08 | 0.04 | asserted 1.00 |
| s1 | In this paper, we specifically consider pricing interventions, in which a platform seeks to adjust base pricing levels at the marketplace level in order to increase demand. | contribution 0.54 | 0.29 | 0.03 | asserted 0.94 |
| s2 | In a matching marketplace, this type of experiment leads to a crucial design question: should the platform match treated and untreated units differently because they paid different prices? | gap 0.49 | 0.07 | 0.04 | unclear 0.48 |
| s3 | We find that standard estimation techniques are biased, but the sign of this bias depends strongly on this design choice. | result 1.00 | 0.93 | 0.26 | asserted 1.00 |
| s4 | Bias can be reduced by using the ``shadow price estimator'', which relies on the optimal dual solution of the platform's supply-demand matching problem -- especially when the platform chooses to ignore pricing differences at matching time. | result 0.56 | 0.91 | 0.53 | asserted 0.93 |
| s5 | We validate our findings both theoretically in a fluid limit setting, and numerically in a finite-sample setting. | method 0.61 | 0.94 | 0.05 | asserted 1.00 |
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The paper
Original abstract
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 in order to increase demand. In a matching marketplace, this type of experiment leads to a crucial design question: should the platform match treated and untreated units differently because they paid different prices? We find that standard estimation techniques are biased, but the sign of this bias depends strongly on this design choice. Bias can be reduced by using the ``shadow price estimator'', which relies on the optimal dual solution of the platform's supply-demand matching problem -- especially when the platform chooses to ignore pricing differences at matching time. We validate our findings both theoretically in a fluid limit setting, and numerically in a finite-sample setting.
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What it cites · 2 sentences without a confident label
Compares with 1 paper
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Though our work is methodologically most similar to [ref] , we reach similar conclusions to [ref] .
2310.17165 · Related Work · 1.00
Cites as background 1 paper
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[ref] analyze a switchback design to estimate marginal effects in systems where interference arises from queueing congestion.
Experimenting under Stochastic Congestion · Related Work · 0.84
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