Network Effects on Experimental Design

Requirements Clarification & Assessment

To address the impact of network effects on experimental design, we need to clarify and assess the following requirements:

1. Understanding Network Effects

   • Define the type of network effects present (direct or indirect).
   • Identify how these effects influence user interactions and value derivation from the product.

2. Experimental Design Constraints

   • Assess the independence of users within the experimental setup.
   • Evaluate how network effects might violate these assumptions.

3. Outcome Metrics

   • Determine the primary and secondary outcome metrics that capture both direct and indirect effects.
   • Ensure metrics reflect the real-world impact of network effects.

4. User Segmentation

   • Define criteria for segmenting users into experimental and control groups.
   • Consider network structure and user connections in segmentation.

5. Control and Experimental Group Assignment

   • Devise a strategy for randomizing users while preserving network integrity.
   • Address potential biases introduced by network effects.