Jeziorski, Przemyslaw; Leng, Dingzhe; Seiler, Stephan - 2025 - This draft: May 10, 2025
We study the estimation of causal treatment effects on demand when treatment is randomly assigned but prices adjust in … response to treatment. We show that regressions of demand on treatment or on treatment and price lead to biased estimates of … the direct treatment effect. The bias in both cases depends on the correlation of price with treatment and points in the …