arXiv Open Access 2023

Business Policy Experiments using Fractional Factorial Designs: Consumer Retention on DoorDash

Yixin Tang Yicong Lin Navdeep S. Sahni

Lihat Sumber

Abstrak

This paper investigates an approach to both speed up business decision-making and lower the cost of learning through experimentation by factorizing business policies and employing fractional factorial experimental designs for their evaluation. We illustrate how this method integrates with advances in the estimation of heterogeneous treatment effects, elaborating on its advantages and foundational assumptions. We empirically demonstrate the implementation and benefits of our approach and assess its validity in evaluating consumer promotion policies at DoorDash, which is one of the largest delivery platforms in the US. Our approach discovers a policy with 5% incremental profit at 67% lower implementation cost.

Topik & Kata Kunci

stat.ME cs.LG econ.EM

Penulis (3)

Yixin Tang

Yicong Lin

Navdeep S. Sahni

Format Sitasi

APA MLA BibTeX

Tang, Y., Lin, Y., Sahni, N.S. (2023). Business Policy Experiments using Fractional Factorial Designs: Consumer Retention on DoorDash. https://arxiv.org/abs/2311.14698

Akses Cepat

Lihat di Sumber

Informasi Jurnal

Tahun Terbit: 2023
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓