I knew the high-level answer (use geographic markets or friend graph communities as clusters so treatment doesn't bleed across the boundary) but fumbled when pushed on the power implications.
Start by defining the interference problem and why user-level randomization fails for recommendation algorithms. Then explain how to form clusters (e.g., by social graph, geography, or time), randomize at the cluster level, and analyze with cluster-robust methods. Finally, discuss trade-offs like reduced power and increased variance.
Pro tip: Emphasize that cluster randomization is not a silver bullet: it reduces spillover but often requires larger sample sizes and careful cluster definition to avoid confounding. Mention that you'd validate cluster assignments by checking pre-experiment balance and interference metrics.
Identify how interference occurs (e.g., social influence, shared content) and choose a clustering unit that captures the interaction, such as social communities, geographic regions, or time-based cohorts.
Randomly assign entire clusters to treatment or control, ensuring each cluster is homogeneous and independent. Use stratified randomization if clusters vary in size or key metrics.
Aggregate metrics at the cluster level or use mixed-effects models with cluster random effects to account for intra-cluster correlation. Compute cluster-robust standard errors.
Discuss how clustering reduces effective sample size, increases variance, and may require longer experiments. Consider the bias-variance trade-off and potential for confounding if clusters are not well-defined.
Check for pre-experiment balance across clusters, monitor spillover metrics, and consider sensitivity analyses to ensure results are robust to cluster definition.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.