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Estimating Treatment Effects under Algorithmic Interference: A Structured Neural Networks Approach

Author

Listed:
  • Ruohan Zhan
  • Shichao Han
  • Yuchen Hu
  • Zhenling Jiang

Abstract

Online user-generated content platforms allocate billions of dollars of promotional traffic through algorithms in two-sided marketplaces. To evaluate updates to these algorithms, platforms frequently rely on creator-side randomized experiments. However, because treated and control creators compete for exposure, such experiments suffer from algorithmic interference: exposure outcomes depend on competitors' treatment status. We show that commonly used difference-in-means estimators can therefore be severely biased and may even recommend deploying inferior algorithms. To address this challenge, we develop a structured semiparametric framework that explicitly models the competitive allocation mechanism underlying exposure. Our approach combines an algorithm choice model that characterizes how exposure is allocated across competing content with a viewer response model that captures engagement conditional on exposure. We construct a debiased estimator grounded in the double machine learning framework to recover the global treatment effect of platform-wide rollout. Methodologically, we extend DML asymptotic theory to accommodate correlated samples arising from overlapping consideration sets. Using Monte Carlo simulations and a large-scale field experiment on a major short-video platform, we show that our estimator closely matches an interference-free benchmark obtained from a costly double-sided experimental design. In contrast, standard estimators exhibit substantial bias and, in some cases, even reverse the sign of the effect.

Suggested Citation

  • Ruohan Zhan & Shichao Han & Yuchen Hu & Zhenling Jiang, 2024. "Estimating Treatment Effects under Algorithmic Interference: A Structured Neural Networks Approach," Papers 2406.14380, arXiv.org, revised Mar 2026.
  • Handle: RePEc:arx:papers:2406.14380
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    References listed on IDEAS

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    Cited by:

    1. Xinqi Chen & Xingyu Bai & Zeyu Zheng & Nian Si, 2025. "Experimental Designs for Multi-Item Multi-Period Inventory Control," Papers 2501.11996, arXiv.org, revised Jan 2026.
    2. Chris Hays & Manish Raghavan, 2025. "Double Machine Learning for Causal Inference under Shared-State Interference," Papers 2504.08836, arXiv.org.

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