Binary Choice under Asymmetric Loss in a Data-Rich Environment: Theory and an Application to Algorithmic Fairness
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arXiv
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| Autores principales: | , , , |
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| Formato: | Preprint |
| Publicado: |
2020
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| Acceso en línea: | |
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| _version_ | 1866918184966160384 |
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| author | Babii, Andrii Chen, Xi Ghysels, Eric Kumar, Rohit |
| author_facet | Babii, Andrii Chen, Xi Ghysels, Eric Kumar, Rohit |
| contents | We study the binary choice problem in a data-rich environment with asymmetric loss functions. The econometrics literature covers nonparametric binary choice problems but does not offer computationally attractive solutions in data-rich environments. The machine learning literature has many algorithms but is focused mostly on loss functions that are independent of covariates. We show that theoretically valid decisions on binary outcomes with general loss functions can be achieved via a very simple loss-based reweighting of logistic regression or state-of-the-art machine learning techniques. We apply our analysis to algorithmic fairness in pretrial detentions. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2010_08463 |
| institution | arXiv |
| publishDate | 2020 |
| record_format | arxiv |
| spellingShingle | Binary Choice under Asymmetric Loss in a Data-Rich Environment: Theory and an Application to Algorithmic Fairness Babii, Andrii Chen, Xi Ghysels, Eric Kumar, Rohit Econometrics Statistics Theory Applications Methodology Machine Learning We study the binary choice problem in a data-rich environment with asymmetric loss functions. The econometrics literature covers nonparametric binary choice problems but does not offer computationally attractive solutions in data-rich environments. The machine learning literature has many algorithms but is focused mostly on loss functions that are independent of covariates. We show that theoretically valid decisions on binary outcomes with general loss functions can be achieved via a very simple loss-based reweighting of logistic regression or state-of-the-art machine learning techniques. We apply our analysis to algorithmic fairness in pretrial detentions. |
| title | Binary Choice under Asymmetric Loss in a Data-Rich Environment: Theory and an Application to Algorithmic Fairness |
| topic | Econometrics Statistics Theory Applications Methodology Machine Learning |
| url | https://arxiv.org/abs/2010.08463 |