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Statistical Treatment Rules under Social Interaction

2022/09/19 by Seungjin Han, Han, Seungjin, Julius Owusu +3
Economics, Econometrics and Finance · #Econometrics (econ.EM) #FOS: Economics and business #econ.EM

paper · pdf · doi:10.48550/arxiv.2209.09077

37 pages, 4 tables

arxiv created 2022/11/09 · arxiv updated 2022/11/11

Abstract

In this paper we study treatment assignment rules in the presence of social interaction. We construct an analytical framework under the anonymous interaction assumption, where the decision problem becomes choosing a treatment fraction. We propose a multinomial empirical success (MES) rule that includes the empirical success rule of Manski (2004) as a special case. We investigate the non-asymptotic bounds of the expected utility based on the MES rule. Finally, we prove that the MES rule achieves the asymptotic optimality with the minimax regret criterion.

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