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Table of Contents
Abstract
1 Introduction
1.1 Related Work
Summary
This paper explores treatment effects in market equilibrium, focusing on the impact of randomized trials in marketplace settings affected by prices. The study builds a stochastic model to analyze treatment effects and interference. It provides insights into direct and indirect treatment effects, estimation challenges, and optimal targeting rules. The research integrates price equilibrium into the analysis, addressing challenges posed by dense interference patterns. The paper proposes a framework for analyzing randomized trials in equilibrium without strong assumptions. It also discusses the implications of interference on policy impact assessment and introduces a non-parametric structural model for treatment effect inference. The study showcases the convergence of treatment effects in large samples and suggests methods for estimating direct and indirect effects accurately. Additionally, the paper explores heterogeneous effects and optimal treatment rules under equilibrium interference, providing insights into policy targeting in interference-prone settings. The findings are supported by simulations and empirical illustrations, demonstrating the effectiveness of the proposed methods.