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Data Interview Question

Network Effects on Experimental Design

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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.