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Fair Adaptive Experiments

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  • Waverly Wei
  • Xinwei Ma
  • Jingshen Wang

Abstract

Randomized experiments have been the gold standard for assessing the effectiveness of a treatment or policy. The classical complete randomization approach assigns treatments based on a prespecified probability and may lead to inefficient use of data. Adaptive experiments improve upon complete randomization by sequentially learning and updating treatment assignment probabilities. However, their application can also raise fairness and equity concerns, as assignment probabilities may vary drastically across groups of participants. Furthermore, when treatment is expected to be extremely beneficial to certain groups of participants, it is more appropriate to expose many of these participants to favorable treatment. In response to these challenges, we propose a fair adaptive experiment strategy that simultaneously enhances data use efficiency, achieves an envy-free treatment assignment guarantee, and improves the overall welfare of participants. An important feature of our proposed strategy is that we do not impose parametric modeling assumptions on the outcome variables, making it more versatile and applicable to a wider array of applications. Through our theoretical investigation, we characterize the convergence rate of the estimated treatment effects and the associated standard deviations at the group level and further prove that our adaptive treatment assignment algorithm, despite not having a closed-form expression, approaches the optimal allocation rule asymptotically. Our proof strategy takes into account the fact that the allocation decisions in our design depend on sequentially accumulated data, which poses a significant challenge in characterizing the properties and conducting statistical inference of our method. We further provide simulation evidence to showcase the performance of our fair adaptive experiment strategy.

Suggested Citation

  • Waverly Wei & Xinwei Ma & Jingshen Wang, 2023. "Fair Adaptive Experiments," Papers 2310.16290, arXiv.org.
  • Handle: RePEc:arx:papers:2310.16290
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    References listed on IDEAS

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    3. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, July.
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    5. Guosheng Yin & Nan Chen & J. Jack Lee, 2012. "Phase II trial design with Bayesian adaptive randomization and predictive probability," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 61(2), pages 219-235, March.
    6. Jianhua Hu & Hongjian Zhu & Feifang Hu, 2015. "A Unified Family of Covariate-Adjusted Response-Adaptive Designs Based on Efficiency and Ethics," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 110(509), pages 357-367, March.
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