Design a policy and measurement plan for encouraging hosts to adopt Instant Book (guests book without host approval) without harming trust or marketplace quality.
Practice against the follow-up probes
- Adoption is voluntary. Why does that break the obvious adopters-vs-non-adopters comparison, and what do you do instead?
- What could go wrong for trust and quality, and which metrics catch it early?
- Would you treat new hosts, professional hosts, and occasional hosts the same way?
- What encouragement levers exist, and how do they differ analytically?
- What would make you roll the program back?
Show answer guide
What the interviewer is probing
Selection-bias instincts: hosts who opt into Instant Book differ systematically from those who don't (professionalism, availability discipline), so naive comparisons flatter the feature. Strong candidates reach for encouragement designs — randomize the nudge, not the adoption — and instrument the trust side (cancellations, incidents, reviews) as first-class outcomes, with policies differentiated by host segment.
Strong answer outline
- Name the selection problem: adoption correlates with host quality; outcome gaps between adopters and non-adopters are not causal effects of the feature.
- Encouragement design: randomize incentives/nudges (search boost, fee discount, education) at the host level; measure intent-to-treat effects, and use the randomized encouragement as an instrument for adoption if effect-on-adopters is needed. Cluster by market if ranking-boost nudges create within-market interference.
- Outcome set: guest conversion and booking latency (the upside); host-cancellation rate, guest-reported incidents, review scores, support contacts, host churn (the trust guardrails). A host who accepts Instant Book but cancels often is worse than one who declines upfront.
- Segment policies: professional hosts likely adopt with light nudges; occasional hosts may need protections (trip-type controls, guest-requirement filters) before adoption is healthy; brand-new hosts are the riskiest to auto-enroll — stage them.
- Long-horizon monitoring: adoption changes the composition of bookings; track quality metrics per cohort over quarters, not weeks.
- Rollback rule: pre-register thresholds on host-cancellation and incident rates by segment; the program pauses per-segment, not globally.
The underlying concept
When treatment is chosen rather than assigned, comparing the treated to the untreated measures who chooses, not what the treatment does. Encouragement designs recover causality by randomizing an upstream influence and analyzing intent-to-treat; instrumental-variable logic then scales that to the compliers. The marketplace twist is that adoption changes system composition — evaluation must include the counterparty's outcomes (guests, here) and run long enough for composition effects to surface.
Source
Distilled Prep canon — curated from Airbnb's public work on experimentation and policy evaluation.
Source: Distilled Prep canon (curated)