English

Auditing and Fixing Economic Validity in Tabular Foundation Models for Discrete Choice

Machine Learning 2026-05-27 v1 Artificial Intelligence Econometrics

Abstract

Tabular foundation models achieve strong accuracy on choice prediction tasks, but their predictions often violate the economic logic those tasks require: raising a price sometimes increases predicted demand, and implied willingness-to-pay estimates are frequently negative or implausible. We propose a two-stage adapter that embeds foundation model predictions within a utility-maximization framework. In the first stage, we estimate a standard choice model whose parameters are constrained to obey economic theory. In the second stage, we freeze those parameters and train a correction term that incorporates the foundation model's predictions as additional information. The result is a model that inherits the foundation model's accuracy gains while guaranteeing monotonic price-demand relationships under policy perturbation and producing analytically computable trade-off measures. On two transportation datasets, the adapter recovers up to 13 percentage points of accuracy over a standard logit model while maintaining perfect economic consistency, something neither the raw foundation models nor conventional distillation achieve.

Keywords

Cite

@article{arxiv.2605.26559,
  title  = {Auditing and Fixing Economic Validity in Tabular Foundation Models for Discrete Choice},
  author = {Yingshuo Wang and Xian Sun and Yanhang Li and Zhichao Fan and Zexin Zhuang},
  journal= {arXiv preprint arXiv:2605.26559},
  year   = {2026}
}

Comments

5 pages, 1 table. Accepted at the FMSD Workshop, ICML 2026

R2 v1 2026-07-22T07:33:48.675Z