Variance Reduction Below the Randomization Grain
Instacart Tech Blog1mo4 min read
Sergio Camelo, Caitlin Kearns, Matias Cersosimo, and Tilman Drerup As artificial intelligence increases the velocity of engineering and science teams, experimental throughput is set to become a bottleneck for many product decisions. Many companies can now build faster than they can experiment, with queues of good ideas running the risk of not being tested because of lack of experimental capacity. This problem is particularly severe in marketplaces, where the presence of spillover and cannibalization effects between experimental units requires cluster-level randomization techniques. That random