Bounded Confounding

Assumption - Unobserved confounding is bounded by a sensitivity parameter.

Applies to - Bandit propensity sensitivity analysis.

Definition - True propensities deviate from logged propensities by at most a multiplicative factor gamma.

Diagnostics - Sensitivity curves over gamma values.

Failure modes - Bounds can be loose and are not point identified.

References - Namkoong et al. (2020).