Measuring price elasticity when you can't A/B the price

Causal inferenceHard

Problem. Product wants to know whether raising the price of a cosmetic line would raise revenue. You can't ethically charge different players different prices for the same item. How do you estimate the effect?

Before you reveal: say your answer out loud, as if you were in the real interview — get your reasoning across clearly first. There is no single correct answer: reading what the interviewer is really after and defending your own thinking is what makes an answer strong.

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