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In many real life situations, including job and loan applications, gatekeepers must make justified and fair real-time decisions about a person's fitness for a particular opportunity. In this paper, we aim to accomplish approximate group…

Machine Learning · Computer Science 2021-05-26 Yi Sun , Ivan Ramirez , Alfredo Cuesta-Infante , Kalyan Veeramachaneni

This paper introduces a rule for policy selection in the presence of estimation uncertainty, explicitly accounting for estimation risk. The rule belongs to the class of risk-aware rules on the efficient decision frontier, characterized as…

Econometrics · Economics 2026-01-21 Victor Chernozhukov , Sokbae Lee , Adam M. Rosen , Liyang Sun

A discrete time probabilistic model, for optimal equity allocation and portfolio selection, is formulated so as to apply to (at least) reinsurance. In the context of a company with several portfolios (or subsidiaries), representing both…

Optimization and Control · Mathematics 2008-12-02 Erik Taflin

This article develops the theory of risk budgeting portfolios, when we would like to impose weight constraints. It appears that the mathematical problem is more complex than the traditional risk budgeting problem. The formulation of the…

Portfolio Management · Quantitative Finance 2019-02-18 Jean-Charles Richard , Thierry Roncalli

We initiate the study of fair classifiers that are robust to perturbations in the training distribution. Despite recent progress, the literature on fairness has largely ignored the design of fair and robust classifiers. In this work, we…

Machine Learning · Computer Science 2020-11-05 Debmalya Mandal , Samuel Deng , Suman Jana , Jeannette M. Wing , Daniel Hsu

The instability of historical risk factor correlations renders their use in estimating portfolio risk extremely questionable. In periods of market stress correlations of risk factors have a tendency to quickly go well beyond estimated…

Adaptation and Self-Organizing Systems · Physics 2008-12-10 Vineer Bhansali , Mark B. Wise

We argue that using the Shapley value of cooperative game theory as the scheme for risk allocation among non-orthogonal risk factors is a natural way of interpreting the contribution made by each of such factors to overall portfolio risk.…

Computational Finance · Quantitative Finance 2021-03-10 Patrick S. Hagan , Andrew Lesniewski , Georgios E. Skoufis , Diana E. Woodward

We propose to interpret distribution model risk as sensitivity of expected loss to changes in the risk factor distribution, and to measure the distribution model risk of a portfolio by the maximum expected loss over a set of plausible…

Risk Management · Quantitative Finance 2013-01-22 Thomas Breuer , Imre Csiszar

This paper firstly addresses the problem of risk assessment under false data injection attacks on uncertain control systems. We consider an adversary with complete system knowledge, injecting stealthy false data into an uncertain control…

Systems and Control · Electrical Eng. & Systems 2022-12-12 Sribalaji C. Anand , André M. H. Teixeira , Anders Ahlén

Fair facility location problems try to balance access costs to open facilities borne by different groups of people by minimizing the $L_p$ norm of these group distances. However, there is no clear choice of "$p$" in the current literature.…

Data Structures and Algorithms · Computer Science 2024-06-21 Swati Gupta , Jai Moondra , Mohit Singh

We develop a new approach to solving classification problems, which is bases on the theory of coherent measures of risk and risk sharing ideas. The proposed approach aims at designing a risk-averse classifier. The new approach allows for…

Machine Learning · Statistics 2018-07-24 Constantine Vitt , Darinka Dentcheva , Hui Xiong

Fair calibration is a widely desirable fairness criteria in risk prediction contexts. One way to measure and achieve fair calibration is with multicalibration. Multicalibration constrains calibration error among flexibly-defined…

Machine Learning · Computer Science 2023-09-04 William La Cava , Elle Lett , Guangya Wan

We study the feasibility and noise sensitivity of portfolio optimization under some downside risk measures (Value-at-Risk, Expected Shortfall, and semivariance) when they are estimated by fitting a parametric distribution on a finite sample…

Risk Management · Quantitative Finance 2008-12-10 Istvan Varga-Haszonits , Imre Kondor

Inspired by recent breakthroughs in predictive modeling, practitioners in both industry and government have turned to machine learning with hopes of operationalizing predictions to drive automated decisions. Unfortunately, many social…

Computers and Society · Computer Science 2020-01-28 Sina Fazelpour , Zachary C. Lipton

Ensuring fairness of prediction-based decision making is based on statistical group fairness criteria. Which one of these criteria is the morally most appropriate one depends on the context, and its choice requires an ethical analysis. In…

Machine Learning · Computer Science 2022-10-20 Joachim Baumann , Christoph Heitz

While training fair machine learning models has been studied extensively in recent years, most developed methods rely on the assumption that the training and test data have similar distributions. In the presence of distribution shifts, fair…

Machine Learning · Computer Science 2023-09-22 Sina Baharlouei , Meisam Razaviyayn

Algorithmic decision making systems are ubiquitous across a wide variety of online as well as offline services. These systems rely on complex learning methods and vast amounts of data to optimize the service functionality, satisfaction of…

Machine Learning · Statistics 2017-03-27 Muhammad Bilal Zafar , Isabel Valera , Manuel Gomez Rodriguez , Krishna P. Gummadi

The definition and implementation of fairness in automated decisions has been extensively studied by the research community. Yet, there hides fallacious reasoning, misleading assertions, and questionable practices at the foundations of the…

Computers and Society · Computer Science 2023-06-05 Robert Lee Poe , Soumia Zohra El Mestari

We consider the age-old problem of allocating items among different agents in a way that is efficient and fair. Two papers, by Dolev et al. and Ghodsi et al., have recently studied this problem in the context of computer systems. Both…

Computer Science and Game Theory · Computer Science 2012-04-20 Avital Gutman , Noam Nisan

This thesis scrutinizes common assumptions underlying traditional machine learning approaches to fairness in consequential decision making. After challenging the validity of these assumptions in real-world applications, we propose ways to…

Machine Learning · Computer Science 2021-02-01 Niki Kilbertus