This question is basically seven questions duct-taped together.
Start by framing the two-sided marketplace and the interference problem, then propose a cluster-randomized design (e.g., by city or driver cohort) to contain spillovers. Walk through metrics, power, bias reduction, and SUTVA diagnostics, and finally discuss how the design simplifies if driver supply is unlimited.
Pro tip: Emphasize that in two-sided markets, the unit of randomization should align with the unit of interference; often randomizing by driver or geographic cluster is more practical than by rider. Also, pre-register your analysis plan to avoid p-hacking.
Clarify the product change and choose a randomization unit that minimizes interference, such as driver cohorts or geographic clusters. Explain why individual rider randomization is problematic due to shared driver supply.
Use techniques like cluster randomization, saturation design, or switchback to contain spillovers. Plan to measure spillovers via differences in outcomes between treated and control within clusters or across boundaries.
Define primary metrics (e.g., completed rides, rider wait time) and guardrail metrics (e.g., driver utilization, cancellation rate). Adjust power calculations for clustering using intra-cluster correlation (ICC) and design effect.
Use bias-reduction techniques like CUPED or stratification. Diagnose SUTVA violations by checking for interference through network effects, e.g., comparing outcomes of control units near treated units.
If driver supply is unlimited, interference reduces, allowing individual-level randomization. Outline a phased rollout: pilot in one city, then expand, with continuous monitoring and analysis using cluster-robust standard errors.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.