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Optimal Design of Experiments in the Presence of Interference

Sarah Baird, Aislinn Bohren, Craig McIntosh and Berk Özler
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Sarah Baird: George Washington University
Craig McIntosh: University of California, San Diego

The Review of Economics and Statistics, 2018, vol. 100, issue 5, 844-860

Abstract: Abstract We formalize the optimal design of experiments when there is interference between units, that is, an individual’s outcome depends on the outcomes of others in her group. We focus on randomized saturation designs, two-stage experiments that first randomize treatment saturation of a group, then individual treatment assignment. We map the potential outcomes framework with partial interference to a regression model with clustered errors, calculate standard errors of randomized saturation designs, and derive analytical insights about the optimal design. We show that the power to detect average treatment effects declines precisely with the ability to identify novel treatment and spillover effects.

Date: 2018
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Citations: View citations in EconPapers (54)

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The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

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