aikyam school

Tempered Thompson Algorithm

RCTClinical Trial

Standard randomized controlled trials allocate subjects equally across treatment arms to maximize statistical precision, but this can assign many vulnerable individuals to inferior interventions [1, 2]. Pure bandit algorithms assign subjects to high-performing arms to maximize participant welfare, but vanishing allocation probabilities for suboptimal arms cause severe inferential bias and high variance [3].

Picture this

Imagine a doctor testing four different medical treatments on arriving patients [3, 4]. Instead of flipping a fair four-sided coin for every single patient throughout the entire study, the doctor tracks which treatment is working best [2, 5]. For each new patient, the doctor flips a biased coin: 80% of the time, the patient receives whichever treatment currently looks best based on historical data, while 20% of the time, the patient is completely randomized among all four options [4]. This guarantees that every treatment maintains a minimum chance of being tested (e.g., 5%), allowing researchers to reliably gather data while still giving most patients the top treatment [4, 6].

What the evidence says

At gamma = 0.2, the minimum allocation probability for any of the 4 treatment arms is bounded below at 5% [4, 6, 7]. In counterfactual simulations using 2-month employment outcomes, the algorithm doubled the employment gains compared to a standard randomized controlled trial [11, 12].

Who was studied
N = 3,770 individuals (1,663 Syrian refugees and 2,107 Jordanian jobseekers) in urban Jordan [7-9].
How
Adaptive targeted field experiment using a Tempered Thompson Algorithm with mixing parameter gamma = 0.2 and 16 demographic strata, evaluating rapid 6-week employment as well as 2-month and 4-month follow-up outcomes [4, 7, 10].

What to do

Set the mixing parameter gamma in a multi-armed bandit algorithm to enforce a lower bound gamma/k on assignment probabilities for all k treatment arms to balance participant welfare and frequentist inference bounds [4, 13].

From the source

"Our Tempered Thompson Algorithm combines the estimation objective of conventional RCTs with the welfare-maximizing objective of bandit algorithms." [5]

An Adaptive Targeted Field Experiment: Job Search Assistance for Refugees in Jordan

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