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Design a contamination-safe pricing experiment

Source: interviewintermediate

WHAT IT TESTS: choosing a randomization unit that hides price differences. OUTLINE: user-level price tests leak via fairness perception, so use geo holdouts or time-based cohorts where everyone in a unit sees one price.

WHAT IT TESTS: whether you can run a pricing experiment without users discovering they pay different prices. ANSWER OUTLINE: explain that user-level price randomization risks fairness backlash and contamination when users compare prices. Propose geo-based testing, where whole markets get one price, or time-based cohorts, where the price applies to everyone who signs up in a window. Within a unit everyone sees the same price, so no side-by-side comparison.

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Design a contamination-safe pricing experiment · Tezvyn