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| Main Authors: | , , , |
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| Format: | Preprint |
| Published: |
2024
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2406.09567 |
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| _version_ | 1866911227107606528 |
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| author | Fernández-Loría, Carlos Hou, Yanfang Provost, Foster Hill, Jennifer |
| author_facet | Fernández-Loría, Carlos Hou, Yanfang Provost, Foster Hill, Jennifer |
| contents | Organizations increasingly rely on predictive models to decide who should be targeted for interventions, such as marketing campaigns, customer retention offers, or medical treatments. Yet these models are usually built to predict outcomes (e.g., likelihood of purchase or churn), not the actual impact of an intervention. As a result, the scores (predicted values) they produce are often imperfect guides for allocating resources. Causal effects can be estimated with randomized experiments, but experiments are costly, limited in scale, and tied to specific actions. We propose causal post-processing (CPP), a family of techniques that uses limited experimental data to refine the outputs of predictive models, so they better align with causal decision making. The CPP family spans approaches that trade off flexibility against data efficiency, unifying existing methods and motivating new ones. Through simulations and an empirical study in digital advertising, we show that CPP can improve intervention decisions, particularly when predictive models capture a useful but imperfect causal signal. Our results show how organizations can combine predictive modeling with experimental evidence to make more effective and scalable intervention decisions. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2406_09567 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Causal Post-Processing of Predictive Models Fernández-Loría, Carlos Hou, Yanfang Provost, Foster Hill, Jennifer Machine Learning Organizations increasingly rely on predictive models to decide who should be targeted for interventions, such as marketing campaigns, customer retention offers, or medical treatments. Yet these models are usually built to predict outcomes (e.g., likelihood of purchase or churn), not the actual impact of an intervention. As a result, the scores (predicted values) they produce are often imperfect guides for allocating resources. Causal effects can be estimated with randomized experiments, but experiments are costly, limited in scale, and tied to specific actions. We propose causal post-processing (CPP), a family of techniques that uses limited experimental data to refine the outputs of predictive models, so they better align with causal decision making. The CPP family spans approaches that trade off flexibility against data efficiency, unifying existing methods and motivating new ones. Through simulations and an empirical study in digital advertising, we show that CPP can improve intervention decisions, particularly when predictive models capture a useful but imperfect causal signal. Our results show how organizations can combine predictive modeling with experimental evidence to make more effective and scalable intervention decisions. |
| title | Causal Post-Processing of Predictive Models |
| topic | Machine Learning |
| url | https://arxiv.org/abs/2406.09567 |