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Prioritized Ranking Experimental Design Using Recommender Systems in Two-Sided Platforms

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  • Mahyar Habibi
  • Zahra Khanalizadeh
  • Negar Ziaeian

Abstract

Interdependencies between units in online two-sided marketplaces complicate estimating causal effects in experimental settings. We propose a novel experimental design to mitigate the interference bias in estimating the total average treatment effect (TATE) of item-side interventions in online two-sided marketplaces. Our Two-Sided Prioritized Ranking (TSPR) design uses the recommender system as an instrument for experimentation. TSPR strategically prioritizes items based on their treatment status in the listings displayed to users. We designed TSPR to provide users with a coherent platform experience by ensuring access to all items and a consistent realization of their treatment by all users. We evaluate our experimental design through simulations using a search impression dataset from an online travel agency. Our methodology closely estimates the true simulated TATE, while a baseline item-side estimator significantly overestimates TATE.

Suggested Citation

  • Mahyar Habibi & Zahra Khanalizadeh & Negar Ziaeian, 2025. "Prioritized Ranking Experimental Design Using Recommender Systems in Two-Sided Platforms," Papers 2502.09806, arXiv.org.
    • Handle: RePEc:arx:papers:2502.09806
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    File URL: http://arxiv.org/pdf/2502.09806
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