This monologue podcast explores the history and impact of randomized controlled trials (RCTs), also known as A/B testing in business. The podcast traces the evolution of RCTs from James Lind's pioneering scurvy experiment to their modern applications in various fields, including medicine, economics, and marketing. Examples like Subway's five-foot-long sandwich promotion and a study on racial discrimination in hiring highlight the practical use of RCTs for data-driven decision-making. The speaker also discusses the limitations of RCTs and the use of instrumental variables in situations where direct experimentation is unethical or impractical, such as studying the impact of school district mergers. Ultimately, the podcast emphasizes the value of RCTs for understanding human behavior and improving business strategies.
