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We investigate the limitations of random trials when the cause of interest is confounded with the effect by formalizing a counterfactual policy-space where the agent's natural predilection is input to a soft-intervention.

Artificial Intelligence · Computer Science 2022-06-07 Erik Skalnes

We address the problem of integrating data from multiple, possibly biased, observational and interventional studies, to eventually compute counterfactuals in structural causal models. We start from the case of a single observational dataset…

Methodology · Statistics 2023-08-01 Marco Zaffalon , Alessandro Antonucci , Rafael Cabañas , David Huber

Predictive models are being increasingly used to support consequential decision making at the individual level in contexts such as pretrial bail and loan approval. As a result, there is increasing social and legal pressure to provide…

Machine Learning · Computer Science 2020-03-02 Amir-Hossein Karimi , Gilles Barthe , Borja Balle , Isabel Valera

Counterfactual inference considers a hypothetical intervention in a parallel world that shares some evidence with the factual world. If the evidence specifies a conditional distribution on a manifold, counterfactuals may be analytically…

Machine Learning · Statistics 2024-07-03 Juha Karvanen , Santtu Tikka , Matti Vihola

In a consideration set model, an individual maximizes utility among the considered alternatives. I relate a consideration set additive random utility model to classic discrete choice and the extended additive random utility model, in which…

Econometrics · Economics 2024-05-24 Roy Allen

Counterfactual explanations are usually obtained by identifying the smallest change made to an input to change a prediction made by a fixed model (hereafter called sparse methods). Recent work, however, has revitalized an old insight: there…

Machine Learning · Computer Science 2020-06-24 Martin Pawelczyk , Klaus Broelemann , Gjergji Kasneci

We study identification of differentiated product demand from market-level data when product characteristics can be endogenous. Past work suggests nonparametric identification may be impossible: that is, in addition to standard price…

Econometrics · Economics 2026-02-23 Kirill Borusyak , Jiafeng Chen , Peter Hull , Lihua Lei

We propose nonparametric identification and semiparametric estimation of joint potential outcome distributions in the presence of confounding. First, in settings with observed confounding, we derive tighter, covariate-informed bounds on the…

Methodology · Statistics 2026-02-19 Jianle Sun , Kun Zhang

This survey reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments;…

Theoretical Economics · Economics 2019-12-04 Federico Echenique

Recommender systems exemplify sequential decision-making under uncertainty, strategically deciding what content to serve to users, to optimise a range of potential objectives. To balance the explore-exploit trade-off successfully, Thompson…

Information Retrieval · Computer Science 2025-07-09 Olivier Jeunen

Causal effects are often characterized with averages, which can give an incomplete picture of the underlying counterfactual distributions. Here we consider estimating the entire counterfactual density and generic functionals thereof. We…

Methodology · Statistics 2021-02-25 Edward H. Kennedy , Sivaraman Balakrishnan , Larry Wasserman

Empirical models of demand for differentiated products rely on low-dimensional product representations to capture substitution patterns. These representations are increasingly proxied by applying ML methods to high-dimensional, unstructured…

Econometrics · Economics 2026-01-12 Timothy Christensen , Giovanni Compiani

The Random Utility Model (RUM) is the leading model to represent the aggregate choices of a heterogeneous population of preference maximizers. We show that if (and only if) preferences are sufficiently uncorrelated, RUM choices can also be…

Theoretical Economics · Economics 2025-05-29 Daniele Caliari , Henrik Petri

In this paper, we address the challenge of performing counterfactual inference with observational data via Bayesian nonparametric regression adjustment, with a focus on high-dimensional settings featuring multiple actions and multiple…

Machine Learning · Computer Science 2022-11-22 Alberto Caron , Gianluca Baio , Ioanna Manolopoulou

Counterfactual prediction methods are required when a model will be deployed in a setting where treatment policies differ from the setting where the model was developed, or when a model provides predictions under hypothetical interventions…

Methodology · Statistics 2025-08-13 Christopher B. Boyer , Issa J. Dahabreh , Jon A. Steingrimsson

Evaluation of counterfactual queries (e.g., "If A were true, would C have been true?") is important to fault diagnosis, planning, determination of liability, and policy analysis. We present a method of revaluating counterfactuals when the…

Artificial Intelligence · Computer Science 2013-02-21 Alexander Balke , Judea Pearl

Estimating counterfactual distributions under interventions is central to treatment risk assessment and counterfactual generation tasks. Existing approaches model the counterfactual distribution as a standalone generative target, without…

Machine Learning · Statistics 2026-05-11 Hugh Dance , Johnny Xi , Peter Orbanz , Benjamin Bloem-Reddy

Given data on the choices made by consumers for different offer sets, a key challenge is to develop parsimonious models that describe and predict consumer choice behavior while being amenable to prescriptive tasks such as pricing and…

Machine Learning · Statistics 2025-04-15 Yanqiu Ruan , Xiaobo Li , Karthyek Murthy , Karthik Natarajan

Machine learning models that operate on graph-structured data, such as molecular graphs or social networks, often make accurate predictions but offer little insight into why certain predictions are made. Counterfactual explanations address…

Machine Learning · Computer Science 2025-11-21 David Bechtoldt , Sidney Bender

We provide sufficient conditions under which a utility function may be recovered from a finite choice experiment. Identification, as is commonly understood in decision theory, is not enough. We provide a general recoverability result that…

Theoretical Economics · Economics 2023-01-30 Christopher P. Chambers , Federico Echenique , Nicolas S. Lambert