advanced25 min studyLesson 853 in Engineering

Randomize groups when one treatment changes another unit’s outcome

Distinguish direct assignment effects, global rollout effects, cluster designs, and dependence-aware uncertainty.

On this page

What you’ll understand

  • Write potential outcomes that depend on neighboring assignments.
  • Compare an individual-assignment contrast with a global rollout contrast.
  • Explain the bias-variance and estimand tradeoffs of clustering.

A recommendation model can change what one user shares, what a seller offers, or how much a shared queue is loaded. Another unit’s outcome can then depend on that first unit’s assigned model. Individual randomization still randomizes assignments, but a simple treated-versus-control difference may no longer estimate the effect of moving the whole system to treatment. Define the intervention whose effect matters and the paths through which units influence one another. Cluster randomization can reduce some cross-arm interference, at the cost of fewer independently assigned groups and new design assumptions.

Potential outcomes can depend on the assignment vector

Without interference, one often writes a unit’s outcome as a function of its own treatment only. With interference, it can depend on the entire assignment vector or on a specified exposure summary, such as the share of treated neighbors. A direct effect at one neighborhood exposure differs from the effect of switching everyone. The experiment’s treatment saturation and network structure therefore belong to the estimand, not merely to the implementation notes.

An exposure model simplifies the assignment vector into categories that are believed to capture relevant spillovers. For example, full-neighborhood treatment might require both a user and every connected collaborator to receive treatment. Such exposure conditions have probabilities determined by the randomization design, sometimes very small under independent user assignment. The original graph-cluster work derives weighting methods under correctly specified exposure assumptions; it does not claim that every unobserved network pathway disappears when a graph is clustered.

Yi=Yi(Z),Δglobal=1N∑i=1N[Yi(1)−Yi(0)]Y_i=Y_i(\mathbf Z),\qquad \Delta_{\rm global}=\frac1N\sum_{i=1}^{N}\left[Y_i(\mathbf1)-Y_i(\mathbf0)\right]
Z is the full assignment vector for N≥1 units; bold 1 and 0 denote all-treated and all-control regimes. This finite-population global contrast has outcome units. Identifying it requires a design and interference assumptions beyond observing one realized assignment vector.↔ Scroll wide equations horizontally.

Clusters change both exposure and independent sample count

Assigning households, teams, or graph communities together can place strongly interacting units in the same arm. This may make observed exposure more similar to a full rollout within each group. Cross-cluster edges can still transmit spillovers, and very large connected components can make perfect separation impractical. Unequal cluster sizes also complicate the choice between an average person effect and an average cluster effect, so state the weighting rule before analyzing results.

Correlated outcomes inside a cluster reduce information relative to the same number of independent people. An elementary equal-size exchangeable model gives a design-effect expression for a population mean. It illustrates why counting members as independent understates uncertainty, but it is not a universal variance formula for every cluster-randomized treatment contrast. Inference must respect the actual number of randomized clusters, allocation constraints, outcome dependence, and any matching or stratification used.

D=1+(m−1)ρ,neff≈n/DD=1+(m-1)\rho,\qquad n_{\rm eff}\approx n/D
This illustrative mean-variance design effect assumes independent equal-size clusters of integer m≥1 members, common individual variance, and exchangeable within-cluster correlation ρ in a valid covariance range with D>0. n is member count. neff is a variance-equivalent heuristic, not a replacement for cluster-level inference.↔ Scroll wide equations horizontally.

Choose the design for the mechanism

A social feature may motivate graph clusters, while a shared marketplace may need geographic, time-block, or two-sided designs with explicit carryover assumptions. No design can be selected solely from a convenient traffic split. Write down whether the intended conclusion concerns direct effects at partial adoption, spillovers onto untreated units, or an all-treatment equilibrium. Those quantities can legitimately differ in magnitude and sign, even with impeccable assignment and logging.

Test the network and exposure assumptions through diagnostics and sensitivity analysis. Measure cross-cluster connections, cluster sizes, and treatment saturation rather than assuming the grouping isolates every interaction. Avoid claiming that a small number of large clusters creates a large independent sample just because the user count is high. When interference remains substantial, report the estimand the design actually supports and the limits on extrapolating it to full deployment.

The direct contrast is smaller than full rollout

Consider isolated two-person households. For each person, expected outcome is 0.1+0.2 times own treatment indicator+0.3 times the partner’s indicator. There are no cross-household effects. Compare independent 50/50 person assignment with assigning the whole household together.

  1. Under all-control, each expected outcome is 0.1. Under all-treatment, it is 0.1+0.2+0.3=0.6. The global rollout contrast is 0.6−0.1=0.5 outcome units per person.

  2. With independent person assignment, the partner is treated with probability 0.5 in either own-assignment arm. Expected treated outcome is 0.1+0.2+0.3×0.5=0.45; expected control outcome is 0.1+0.3×0.5=0.25. Their contrast is only 0.20.

  3. Household assignment makes both members treated or both control, so its expected arm contrast is 0.6−0.1=0.5 under these isolation assumptions. The independent assignment units are households, and a finite experiment still needs enough households for precise estimation.

The result

Independent person assignment identifies a direct contrast at mixed adoption in this toy, while household assignment matches its full-household rollout contrast. Randomization alone does not make the estimands identical.

Explore the model

Interactive lab

Interactive lab · sampling

Independence is an assumption behind nominal sample size

Reset, set Success probability p to 0.5 and Independent samples n to 20. Predict sample-mean variance 0.0125 before Step. Reset, set p to 0.5 and n to 100, predict variance 0.0025 before Step. These exact binomial masses assume independent observations; playback highlights outcomes rather than sampling a network. The instrument does not include cluster covariance or spillovers.

Independence is an assumption behind nominal sample sizeExact binomial masses for the mean of n independent Bernoulli trials, compared with normal mass between adjacent half-count boundaries; normal tails outside the finite support remain outside the bars. Playback highlights outcomes, not random samples. The Berry–Esseen bound applies to standardized CDFs, not individual bars or continuity-corrected errors. At p = 0 or 1, normal comparison and that bound are disabled. Normal-CDF evaluation uses a numerical approximation with absolute error below 7.5×10⁻⁸ (at most 1.5×10⁻⁷ per interval, before rounding). Current readings: Mean sample proportion: 0.5; Sample-mean variance: 0.0125; Uniform CDF error bound: ≤ 0.1062. All parameters are adjustable with the labeled controls below.Exact distribution of the mean of 20 independent Bernoulli variables with success probability 0.5; playback highlights outcome 0.00.250.50.75100.0580.1150.1730.23Sample mean · k / nProbability massNormal bin masses are an approximationk = 0 · exact probability = 9.54e-7
Exact binomial massNormal interval massHighlighted outcome / mean
Mean sample proportion
0.5
Sample-mean variance
0.0125
Uniform CDF error bound
≤ 0.1062
t = 0 s

Exact binomial masses for the mean of n independent Bernoulli trials, compared with normal mass between adjacent half-count boundaries; normal tails outside the finite support remain outside the bars. Playback highlights outcomes, not random samples. The Berry–Esseen bound applies to standardized CDFs, not individual bars or continuity-corrected errors. At p = 0 or 1, normal comparison and that bound are disabled. Normal-CDF evaluation uses a numerical approximation with absolute error below 7.5×10⁻⁸ (at most 1.5×10⁻⁷ per interval, before rounding). Parameter changes pause playback and recompute the model at the current elapsed time. Reset restores both parameters and returns time to zero. Playback starts paused. Adjust either parameter, then choose Play or Step.

Look forThe variance reduction shown by increasing n applies only under the stated independent-unit model.

Check your understanding

What does cluster randomization automatically guarantee?

Try it yourself

Under the illustrative equal-size mean model, take n=100 members, m=5 per cluster, and within-cluster correlation ρ=0.1. Compute design effect and variance-equivalent effective member count.

Take a moment to make a prediction or work it out on paper. Open a hint when you need one.

Give me a hint

Use 1+(m−1)ρ, then divide the nominal member count by it.

Compare with the solution

D=1+4×0.1=1.4, so neff≈100/1.4≈71.43 independent-member equivalents for that mean-variance model. There are actually 20 clusters, which remain the randomized groups; replacing them with 71.43 fictitious independent assignments would be incorrect. A real treatment contrast needs the actual cluster design and its corresponding uncertainty calculation.

Take it with you

  • Interference makes the assignment environment part of the estimand.
  • Cluster assignment can reduce spillovers while reducing independent group count.
  • A full-rollout conclusion requires assumptions beyond individual randomization.

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