Estimating Effects of Long-Term Treatments

82 Pages Posted: 13 Feb 2023 Last revised: 31 Jan 2025

See all articles by Shan Huang

Shan Huang

The University of Hong Kong

Chen Wang

The University of Hong Kong, Faculty of Business and Economics, Students

Yuan Yuan

University of California, Davis - Graduate School of Management

Jinglong Zhao

Boston University - Questrom School of Business

Jingjing Zhang

Tencent Inc.

Date Written: February 9, 2023

Abstract

Estimating the effects of long-term treatments through A/B testing is challenging. Treatments, such as updates to product functionalities, user interface designs, and recommendation algorithms, are intended to persist within the system for a long duration of time after their initial launches. However, due to the constraints of conducting long-term experiments, practitioners often rely on short-term experimental results to make product launch decisions. It remains open how to accurately estimate the effects of long-term treatments using short-term experimental data. To address this question, we introduce a longitudinal surrogate framework that decomposes the long-term effects into functions based on user attributes, short-term metrics, and treatment assignments. We outline identification assumptions, estimation strategies, inferential techniques, and validation methods under this framework. Empirically, we demonstrate that our approach outperforms existing solutions by using data from two real-world experiments, each involving more than a million users on WeChat, one of the world's largest social networking platforms. 

Keywords: A/B testing, long-term treatments, surrogates, causal inference, product management

Suggested Citation

Huang, Shan and Wang, Chen and Yuan, Yuan and Zhao, Jinglong and Zhang, Jingjing, Estimating Effects of Long-Term Treatments (February 9, 2023). Available at SSRN: https://ssrn.com/abstract=4352459 or http://dx.doi.org/10.2139/ssrn.4352459

Shan Huang

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong
China

Chen Wang (Contact Author)

The University of Hong Kong, Faculty of Business and Economics, Students ( email )

Pokfulam Road
Hong Kong
Hong Kong

Yuan Yuan

University of California, Davis - Graduate School of Management ( email )

One Shields Avenue
Davis, CA 95616
United States

Jinglong Zhao

Boston University - Questrom School of Business ( email )

595 Commonwealth Avenue
Boston, MA MA 02215
United States

Jingjing Zhang

Tencent Inc. ( email )

Shenzhen
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
514
Abstract Views
2,048
Rank
115,365
PlumX Metrics