Online platforms increasingly compare many adaptive decision policies---ranking systems, recommendation algorithms, pricing rules, and language-model agents---while each reward-bearing interaction can be costly or risky. A direct A/B/n design gives each of $J$ policies its own horizon-$T$ trajectory and therefore uses $JT$ outcomes. We introduce Tree-Coupled A/B Testing (\TCAB), an exact feedback-sharing design for arbitrary history-dependent contextual-bandit policies. At each round, a predictable tree connects the current policy histories; every parent--child context--action law is maximally coupled, and one reward is shared within each component of matched tree edges. Every policy retains exactly its standalone finite-horizon trajectory law, even though the policies are deliberately dependent. If $D_{e,t}$ records a mismatch on tree edge $e$ at round $t$, the number of reward queries satisfies the pathwise identity $N(T)=T+\sum_{t,e}D_{e,t}$ and hence equals $T$ plus cumulative tree-edge total variation in expectation. This cost is conditionally optimal among exact edge-local designs on the selected tree, and a current-round minimum-spanning tree is myopically optimal among tree designs. For fixed $J$, sublinear pseudo-regret of every policy and almost-sure uniqueness of the oracle action imply $\mathbb{E}[N(T)]=T+o(T)$, versus $JT$ for independent runs. We also obtain finite-sample variance bounds for pairwise policy contrasts. Experiments on reward-model evaluation, multiple-choice language-model evaluation, and adaptive search policies demonstrate substantial improvements in the cost--precision frontier.
A/B testing remains the standard for rolling out new features in the technology industry. Each experiment, however, consumes real traffic, engineering effort, and weeks of wall-clock time. Can AI agents---conditioned on behavioral profiles and contextual descriptions of the intervention---simulate outcomes accurately enough to vet candidate treatments before committing live traffic? We formalize this question as a \emph{Simulated Randomized Controlled Trial} (S-RCT) and derive a two-layer error decomposition that separates agent approximation error from subsampling error, enabling targeted improvements to each. The framework is agent-agnostic: any behavioral model---from a fine-tuned specialist to a general-purpose foundation model---can serve as the simulation engine. Validated on 67 historical marketing A/B tests, a baseline S-RCT using an off-the-shelf foundation model captures directional signal (sign overlap 0.70) but systematically overshoots effect magnitudes. A two-phase pre-period calibration protocol reduces the squared prediction error (after removing irreducible measurement noise) by ${\sim}77\times$; a within-subject design---where each agent is exposed to both arms---reduces standard errors by ${\sim}2.4\times$. We discuss limitations of the current approach and identify applications where experimenters stand to benefit from agentic signals.
In many domains such as Palliative Care, Credit Assignment and Recommender Systems, predictions may causally influence the outcomes they predict. This phenomena is known as Outcome Performativity. This paper formalises an approach for detecting Outcome Performativity using prediction intervention called Outcome Performativity A/B Detection (OPAB). OPAB enables the detection of Outcome Performativity by assessing the dissimilarity in outcome distributions produced by different predictions groups (interventions). If that dissimilarity is significant, Outcome Performativity is detected. We derive sample complexity bounds for OPAB under various Outcome Performative assumption classes which we empirically validate. Results show that detecting Outcome Performativity using OPAB is achievable in numerous cases. Results also show the presence of regions of indistinguishability which describe settings where the allotted number of interventions are insufficient for detecting Outcome Performativity. The results of which have broader practical implications for the detectability of Outcome Performativity in settings where samples are scarce, cost-prohibitive or potentially unethical to obtain. The paper concludes with a case study on the efficacy of OPAB on the Open Bandits dataset, and provides directions for future work.
Online controlled experiments are the gold standard for hypothesis testing in online platforms. Notwithstanding their ubiquity, they are notoriously expensive to run, and issues of variance hamper statistical power in assessing treatment effects. While standard variance reduction techniques leverage model-based control variates to reduce outcome noise, they remain agnostic to potential structural relationships between competing policies. In this work, we identify a critical inefficiency in the standard A/B-testing protocol: when a treatment and control policy agree on an action, the resulting outcome contributes noise but no signal regarding the treatment effect -- unnecessarily inflating confidence intervals. We propose a novel experimental protocol that exploits this policy overlap to accelerate experimentation. The key insight is to frame the randomised treatment assignment mechanism as a meta-policy, and leverage $Δ$-Off-Policy Estimation methods to obtain unbiased estimates for average treatment effects. We prove analytically that our approach recovers standard A/B-testing practices in the general case, but that its variance scales with the divergence between policies rather than raw outcome variance. Hence, we dominate the standard Difference-in-Means estimator whenever policies have common support, and the improvement is strict whenever the overlap region contributes non-zero residual variance. Empirical results corroborate these theoretical insights -- holding promise for significant impact on the real-world evaluation of recommender systems, information retrieval pipelines, and large language model interfaces.
A/B testing has become the gold standard for data-driven decision-making in large-scale online experimentation, providing critical guidance for feature launch, pricing optimization, and user experience enhancement. To maximize statistical sensitivity, many technology companies routinely employ Controlled-experiment Using Pre-Experiment Data (CUPED), a technique that achieves substantial variance reduction while preserving the unbiasedness of estimating the average treatment effect. Despite its widespread adoption, several critical methodological and practical nuances of CUPED remain underexplored. This paper systematically addresses five frequently encountered yet overlooked questions regarding the application of CUPED. First, we provide a comparative analysis of various post-CUPED estimators to identify the optimal adjustment specification. Second, we evaluate the validity of regression-based adjustments and delineate robust variance estimation methods tailored for such frameworks. Finally, we extend our investigation to complex but common scenarios, including multi-arm experiments and two-stage sampling designs. Our findings reveal that in these settings, naive reliance on standard variance estimators can lead to severely misleading inferences. By offering rigorous theoretical insights and extensive experimental validation, this work deepens the conceptual understanding of CUPED. Notably, the recommended methodologies have been successfully deployed and integrated into ByteDance's experimentation platform.
Joel Persson, Mårten Schultzberg, Sebastian Ankargrenstat.ME cs.AI econ.EM math.ST
Organizations and researchers show increasing interest in using large language models (LLMs) in place of human participants in A/B tests, in the hope of experimenting faster and at lower cost. We study when a treatment effect estimated on LLM outcomes can recover the effect for the human population of interest. Distributional equivalence between LLM and human outcomes would make any standard estimator valid but is unrealistic. We therefore develop a statistical framework that adapts surrogate endpoint theory to LLMs, showing that calibrating LLM outcomes to human outcomes identifies the average treatment effect under surrogacy and comparability conditions that are jointly weaker than distributional equivalence. We present a falsification test for surrogacy and a bound on the worst-case bias from limited overlap between the LLM and human samples. We further show that the stochasticity inherent to LLMs can weaken surrogacy for identification while also introducing bias and variance during estimation, but that using an average over multiple LLM draws per unit as the surrogate mitigates these issues. Simulations validate the results, and an empirical application to the Upworthy Research Archive dataset shows that raw LLM outputs recover only 39% of the human treatment effect while nonparametric calibration closes the gap. A central takeaway is that A/B testing on LLM responses is correct only by assumption, whereas A/B testing on humans is correct by design, and that the required assumptions are hardest to justify precisely where LLMs promise the greatest benefit. We discuss the choice of LLM, prompting, and temperature as design variables, the compounded challenge posed by long-term outcomes, and how to size human pilot studies for validation.