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COMPEL Glossary / regression-discontinuity-rdd

Regression discontinuity (RDD)

A quasi-experimental design using a threshold — e.g., a credit-score cutoff, an eligibility cutoff — to create a natural experiment near the cutoff.

What this means in practice

Identifies local causal effect for units near the threshold; applicable to AI features gated by score-based rules.

Synonyms

RDD , regression discontinuity design

See also

  • A/B test (RCT) — A randomised controlled trial in which units are randomly assigned to treatment (AI feature) and control (no feature or baseline feature).
  • Difference-in-differences (DiD) — A quasi-experimental design comparing treated and control trajectories over time — identifying causal effect from differential change.
  • Counterfactual outcome — The outcome that would have occurred without the AI intervention — the benchmark against which incremental AI value is measured.