English

Individualized Decision-Making Under Partial Identification: Three Perspectives, Two Optimality Results, and One Paradox

Methodology 2021-10-22 v1 Statistics Theory Applications Machine Learning Statistics Theory

Abstract

Unmeasured confounding is a threat to causal inference and gives rise to biased estimates. In this article, we consider the problem of individualized decision-making under partial identification. Firstly, we argue that when faced with unmeasured confounding, one should pursue individualized decision-making using partial identification in a comprehensive manner. We establish a formal link between individualized decision-making under partial identification and classical decision theory by considering a lower bound perspective of value/utility function. Secondly, building on this unified framework, we provide a novel minimax solution (i.e., a rule that minimizes the maximum regret for so-called opportunists) for individualized decision-making/policy assignment. Lastly, we provide an interesting paradox drawing on novel connections between two challenging domains, that is, individualized decision-making and unmeasured confounding. Although motivated by instrumental variable bounds, we emphasize that the general framework proposed in this article would in principle apply for a rich set of bounds that might be available under partial identification.

Keywords

Cite

@article{arxiv.2110.10961,
  title  = {Individualized Decision-Making Under Partial Identification: Three Perspectives, Two Optimality Results, and One Paradox},
  author = {Yifan Cui},
  journal= {arXiv preprint arXiv:2110.10961},
  year   = {2021}
}

Comments

Harvard Data Science Review, Issue 3.3

R2 v1 2026-06-24T07:03:55.314Z