Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230802
Authors: 
Haupt, Johannes
Jacob, Daniel
Gubela, Robin M.
Lessmann, Stefan
Year of Publication: 
2019
Series/Report no.: 
IRTG 1792 Discussion Paper No. 2019-026
Abstract: 
Customer scoring models are the core of scalable direct marketing. Uplift models provide an estimate of the incremental benefit from a treatment that is used for operational decision-making. Training and monitoring of uplift models require experimental data. However, the collection of data under randomized treatment assignment is costly, since random targeting deviates from an established targeting policy. To increase the cost-efficiency of experimentation and facilitate frequent data collection and model training, we introduce supervised randomization. It is a novel approach that integrates existing scoring models into randomized trials to target relevant customers, while ensuring consistent estimates of treatment effects through correction for active sample selection. An empirical Monte Carlo study shows that data collection under supervised randomization is cost-efficient, while downstream uplift models perform competitively.
Subjects: 
Uplift Modeling
Causal Inference
Experimental Design
Selection Bias
JEL: 
C00
Document Type: 
Working Paper

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