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Scoring rules are an important tool for evaluating the performance of probabilistic forecasting schemes. In the binary case, scoring rules (which are strictly proper) allow for a decomposition into terms related to the resolution and to the…

Atmospheric and Oceanic Physics · Physics 2015-05-13 Jochen Bröcker

We study the power and limitations of posted prices in multi-unit markets, where agents arrive sequentially in an arbitrary order. We prove upper and lower bounds on the largest fraction of the optimal social welfare that can be guaranteed…

Computer Science and Game Theory · Computer Science 2020-02-18 Tomer Ezra , Michal Feldman , Tim Roughgarden , Warut Suksompong

Probability forecasts of events are routinely used in climate predictions, in forecasting default probabilities on bank loans or in estimating the probability of a patient's positive response to treatment. Scoring rules have long been used…

Statistics Theory · Mathematics 2012-02-24 Tze Leung Lai , Shulamith T. Gross , David Bo Shen

For three natural classes of dynamic decision problems; 1. additively separable problems, 2. discounted problems, and 3. discounted problems for a fixed discount factor; we provide necessary and sufficient conditions for one sequential…

Theoretical Economics · Economics 2024-05-24 Mark Whitmeyer , Cole Williams

Fairness aware data mining (FADM) aims to prevent algorithms from discriminating against protected groups. The literature has come to an impasse as to what constitutes explainable variability as opposed to discrimination. This distinction…

Methodology · Statistics 2022-01-11 Kory D. Johnson , Dean P. Foster , Robert A. Stine

We begin by formulating and characterizing a dominance criterion for prize sequences: $x$ dominates $y$ if any impatient agent prefers $x$ to $y$. With this in hand, we define a notion of comparative patience. Alice is more patient than Bob…

Theoretical Economics · Economics 2024-07-03 Mark Whitmeyer

Decision markets are mechanisms for selecting one among a set of actions based on forecasts about their consequences. Decision markets that are based on scoring rules have been proven to offer incentive compatibility analogous to properly…

Computer Science and Game Theory · Computer Science 2021-11-16 Wenlong Wang , Thomas Pfeiffer

We use Monte Carlo techniques to simulate an organized prediction competition between a group of a scientific experts acting under the influence of a ``self-governing'' prediction reward algorithm. Our aim is to illustrate the advantages of…

Social and Information Networks · Computer Science 2023-05-09 J. O. Gonzalez-Hernandez , Jonathan Marino , Ted Rogers , Brandon Velasco

Many popular algorithmic fairness measures depend on the joint distribution of predictions, outcomes, and a sensitive feature like race or gender. These measures are sensitive to distribution shift: a predictor which is trained to satisfy…

Machine Learning · Statistics 2022-02-11 Alan Mishler , Niccolò Dalmasso

Proper scoring rules are commonly applied to quantify the accuracy of distribution forecasts. Given an observation they assign a scalar score to each distribution forecast, with the the lowest expected score attributed to the true…

Methodology · Statistics 2021-02-01 Carol Alexander , Michael Coulon , Yang Han , Xiaochun Meng

Computers are increasingly used to make decisions that have significant impact in people's lives. Often, these predictions can affect different population subgroups disproportionately. As a result, the issue of fairness has received much…

Recent discussion in the public sphere about algorithmic classification has involved tension between competing notions of what it means for a probabilistic classification to be fair to different groups. We formalize three fairness…

Machine Learning · Computer Science 2016-11-18 Jon Kleinberg , Sendhil Mullainathan , Manish Raghavan

We study the problem of fairly allocating indivisible goods to groups of agents. Agents in the same group share the same set of goods even though they may have different preferences. Previous work has focused on unanimous fairness, in which…

Computer Science and Game Theory · Computer Science 2020-01-01 Erel Segal-Halevi , Warut Suksompong

An implicit ambiguity in the field of prediction-based decision-making regards the relation between the concepts of prediction and decision. Much of the literature in the field tends to blur the boundaries between the two concepts and often…

Computers and Society · Computer Science 2024-03-19 Teresa Scantamburlo , Joachim Baumann , Christoph Heitz

Every prediction is ultimately used in a downstream task. Consequently, evaluating prediction quality is more meaningful when considered in the context of its downstream use. Metrics based solely on predictive performance often diverge from…

Machine Learning · Computer Science 2025-08-26 Novin Shahroudi , Viacheslav Komisarenko , Meelis Kull

We investigate the efficiency of fair allocations of indivisible goods using the well-studied price of fairness concept. Previous work has focused on classical fairness notions such as envy-freeness, proportionality, and equitability.…

Computer Science and Game Theory · Computer Science 2021-09-08 Xiaohui Bei , Xinhang Lu , Pasin Manurangsi , Warut Suksompong

In this work we generalize standard Decision Theory by assuming that two outcomes can also be incomparable. Two motivating scenarios show how incomparability may be helpful to represent those situations where, due to lack of information,…

Computer Science and Game Theory · Computer Science 2014-04-04 Piero A. Bonatti , Marco Faella , Luigi Sauro

Conformal prediction is a statistically rigorous method for quantifying uncertainty in models by having them output sets of predictions, with larger sets indicating more uncertainty. However, prediction sets are not inherently actionable;…

Machine Learning · Computer Science 2025-02-17 Jesse C. Cresswell , Bhargava Kumar , Yi Sui , Mouloud Belbahri

Data-driven decision support tools play an increasingly central role in decision-making across various domains. In this work, we focus on binary classification models for predicting positive-outcome scores and deciding on resource…

Machine Learning · Computer Science 2025-04-30 Simon De Vos , Jente Van Belle , Andres Algaba , Wouter Verbeke , Sam Verboven

In economics, there are many ways to describe the interaction between a "seller" and a "buyer". The most common one, with which we interact almost every day, is selling for a fixed price. This option is perfect for selling a mass product,…

General Finance · Quantitative Finance 2024-07-10 O. A. Malafeyev , I. E. Khomenko