skip to main content

► CANCELED: Ulric B. and Evelyn L. Bray Social Sciences Seminar

Wednesday, May 1, 2024
4:00pm to 5:00pm
Add to Cal
Baxter B125
This seminar has been canceled.
Stefan Wager, Associate Professor of Operations, Information and Technology, Stanford Graduate School of Business,

Topic: Treatment Effects in Market Equilibrium

Abstract: When randomized trials are run in a marketplace equilibriated by prices, interference arises. To analyze this, we build a stochastic model of treatment effects in equilibrium. We characterize the average direct (ADE) and indirect treatment effect (AIE) asymptotically. A standard RCT can consistently estimate the ADE, but confidence intervals and AIE estimation require price elasticity estimates, which we provide using a novel experimental design. We define heterogeneous treatment effects and derive an optimal targeting rule that meets an equilibrium stability condition. We illustrate our results using a freelance labor market simulation and data from a cash transfer experiment.

Written with Evan Munro and Kuang Xu.

For more information, please contact Sabrina Hameister by phone at 626-395-4228 or by email at [email protected].