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Treated advertisers bid more, raising the control's prices

An ad platform randomly gives some advertisers a smart bidding tool and keeps others as controls, all competing in the same real-time ad auctions. Treated advertisers win more impressions at good prices; control advertisers win fewer at higher prices. The platform reports a big win for the tool.

Explain why this A/B comparison overstates the tool's value, and how you would run the experiment.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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