You want to run a difference-in-difference experiment with a price increase for your lawn chairs in Miami,FL.If you are worried about "leakage" with your control group,a poor comparison city would be
A)Boston,MA
B)San Francisco,CA
C)St.Paul,MN
D)Tampa Bay,FL

Question

You want to run a difference-in-difference experiment with a price increase for your lawn chairs in Miami,FL.If you are worried about "leakage" with your control group,a poor comparison city would be
A)​Boston,MA
B)San Francisco,CA
C)St.Paul,MN
D)​Tampa Bay,FL

Quizplus · Accepted Answer

Tampa Bay, FL, is geographically close to Miami, FL, increasing the likelihood of "leakage" where customers or influences from the treatment group (Miami) could affect the control group (Tampa Bay) due to their proximity. This could include customers traveling between the cities for purchases or shared media markets.

You Want to Run a Difference-In-Difference Experiment with a Price