Switchback Experiments: How to Reduce Errors and Improve Results
"Unlock the secrets to better data with empirical designs that minimize common experimental mistakes"
In today's data-driven world, experiments are essential for improving business and social strategies. Digital platforms have become popular, and so experimentation is also essential. The rising scale and complexity of modern digital applications have made experimentation both more powerful and more challenging. Understanding the nuances of experimental design and analysis is now more important than ever, to make well-informed decisions.
A common scenario is product changes on platforms like ride-sharing apps, where teams want to measure the impact of new algorithms, such as pricing or matching systems, on user behavior. These changes are often tested in a specific geographic market over a period of weeks. However, a product change can affect users, creating interference and altering outcomes for both riders and drivers.
To mitigate these issues, companies aggregate users in a market into a single unit and use switchback designs. These designs involve switching between treatment and control conditions over time, a technique initially used in agriculture and medicine. After the experiment, the global average treatment effect (GATE) is estimated to measure the difference in average outcomes between when a product change is fully implemented versus when it is absent. Precise estimation of GATE is crucial for deciding whether to launch a product change indefinitely, and this precision relies heavily on the design of the switchback experiment.
Understanding the Key Factors That Affect Estimation Error

Prior research emphasizes carryover effects as a primary source of estimation error. Carryover effects refer to the impact of past interventions on future outcomes, particularly when it takes time for the marketplace to reach a new equilibrium. Now, it's time to talk about four critical factors that impact switchback experiment accuracy: carryover effects, periodicity, correlated outcomes, and simultaneous interventions.
- Carryover Effects: How long past changes influence current results.
- Periodicity: Predictable, repeating patterns in the data.
- Correlated Outcomes: External factors creating dependent results.
- Simultaneous Interventions: Other tests running at the same time.
Design Principles for Error Reduction
Careful design principles significantly reduce estimation errors in switchback experiments. Balancing periodicity, choosing appropriate switching periods, and randomizing interval start and end points reduces estimation error. Balancing periodicity reduces all sources of variance. Switching less frequently reduces bias from carryover effects, while switching more frequently reduces variance from randomness in measurement errors and treatment assignments. Randomizing interval start and end points reduces bias and variance from simultaneous interventions.