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Firms must often decide how to target households that did not respond to past promotions. For example, when prospecting for new customers, households that purchase are no longer eligible, and so the remaining households are an increasingly pure pool of non-responders. Past response data reflects...
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We propose an approach for determining the sample size required when using an experiment to train and certify a targeting policy. Calculating the rate at which the performance of a targeting model improves with additional training data is a complex problem. We approximate the problem by grouping...
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