Statistical Treatment Rules under Social Interaction
Abstract
In this paper we study treatment assignment rules in the presence of social
interaction. We construct an analytical framework under the anonymous
interaction assumption, where the decision problem becomes choosing a treatment
fraction. We propose a multinomial empirical success (MES) rule that includes
the empirical success rule of Manski (2004) as a special case. We investigate
the non-asymptotic bounds of the expected utility based on the MES rule.
Finally, we prove that the MES rule achieves the asymptotic optimality with the
minimax regret criterion.