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We study statistical discrimination of individuals based on payoff-irrelevant social identities in markets that utilize ratings and recommendations for social learning. Even though rating/recommendation algorithms can be designed to be fair…

Computer Science and Game Theory · Computer Science 2024-11-11 Yeon-Koo Che , Kyungmin Kim , Weijie Zhong

Machine learning has grown in popularity to help assign resources and make decisions about users, which can result in discrimination. This includes hiring markets, where employers have increasingly been interested in using automated tools…

Computer Science and Game Theory · Computer Science 2024-12-20 Serafina Kamp , Benjamin Fish

I study how organisations choose selection procedures in a competitive environment. Two firms compete to hire candidates of unknown productivity from a common pool. Firms simultaneously post a selection procedure which consists of a test…

Theoretical Economics · Economics 2026-05-01 Nathan Hancart

Undesired bias afflicts both human and algorithmic decision making, and may be especially prevalent when information processing trade-offs incentivize the use of heuristics. One primary example is \textit{statistical discrimination} --…

Social discrimination seems to be a persistent phenomenon in many cultures. It is important to understand the mechanisms that lead people to judge others by the group to which they belong, rather than individual qualities. It was recently…

Adaptation and Self-Organizing Systems · Physics 2019-12-11 Gorm Gruner Jensen , Frederik Tischel , Stefan Bornholdt

We propose a dynamical model for group formation and switching behavior in systems where each group competes for members through attraction functions that are inversely proportional to their current sizes. This attraction is modulated by…

Dynamical Systems · Mathematics 2026-03-12 Samit Ghosh

We present a conceptual model to measure disparity--the target study--where social groups may be similarly situated (i.e., balanced) on allowable covariates. Our model, based on a sampling design, does not intervene to assign social group…

Methodology · Statistics 2025-01-14 John W. Jackson , Yea-Jen Hsu , Raquel C. Greer , Romsai T. Boonyasai , Chanelle J. Howe

We establish that statistical discrimination is possible if and only if it is impossible to uniquely identify the signal structure observed by an employer from a realized empirical distribution of skills. The impossibility of statistical…

Theoretical Economics · Economics 2018-08-07 Christopher P. Chambers , Federico Echenique

This paper studies the economic role of persistent dispersion in allocations across agents. We develop a tractable model in which firms allocate resources under imperfect information and behavioral updating, generating sustained…

Theoretical Economics · Economics 2026-04-02 Nazaria Solferino

We analyze statistical discrimination in hiring markets using a multi-armed bandit model. Myopic firms face workers arriving with heterogeneous observable characteristics. The association between the worker's skill and characteristics is…

Theoretical Economics · Economics 2023-07-17 Junpei Komiyama , Shunya Noda

When information acquisition is costly but flexible, a principal may rationally acquire information that favors one group over another. The former group faces incentives to invest in becoming productive, while the latter is discouraged from…

Theoretical Economics · Economics 2024-09-10 Federico Echenique , Anqi Li

Many biological phenomena such as locomotion, circadian cycles, and breathing are rhythmic in nature and can be modeled as rhythmic dynamical systems. Dynamical systems modeling often involves neglecting certain characteristics of a…

Dynamical Systems · Mathematics 2016-01-20 M. Mert Ankaralı , Shahin Sefati , Manu S. Madhav , Andrew Long , Amy J. Bastian , Noah J. Cowan

The occurrence of discrimination is an important problem in the social and economical sciences. Much of the discrimination observed in empirical studies can be explained by the theory of in-group favoritism, which states that people tend to…

Physics and Society · Physics 2019-03-15 Gorm Gruner Jensen , Stefan Bornholdt

We consider games in which players search for a hidden prize, and they have asymmetric information about the prize location. We study the social payoff in equilibria of these games. We present sufficient conditions for the existence of an…

Theoretical Economics · Economics 2022-04-19 Gilad Bavly , Yuval Heller , Amnon Schreiber

Sequential Social Dilemmas (SSDs) provide a key framework for studying how cooperation emerges when individual incentives conflict with collective welfare. In Multi-Agent Reinforcement Learning, these problems are often addressed by…

Machine Learning · Computer Science 2026-02-18 Alper Demir , Hüseyin Aydın , Kale-ab Abebe Tessera , David Abel , Stefano V. Albrecht

We propose an equilibrium interaction model of occupational segregation and labor market inequality between two social groups, generated exclusively through the documented tendency to refer informal job seekers of identical "social color".…

Theoretical Economics · Economics 2022-12-27 I. Sebastian Buhai , Marco J. van der Leij

A number of machine learning (ML) methods have been proposed recently to maximize model predictive accuracy while enforcing notions of group parity or fairness across sub-populations. We propose a desirable property for these procedures,…

Machine Learning · Computer Science 2019-10-08 Ofir Nachum , Heinrich Jiang

As algorithmic decision-making systems become more prevalent in society, ensuring the fairness of these systems is becoming increasingly important. Whilst there has been substantial research in building fair algorithmic decision-making…

Machine Learning · Computer Science 2023-10-30 Madeleine Waller , Odinaldo Rodrigues , Oana Cocarascu

When consequential decisions are informed by algorithmic input, individuals may feel compelled to alter their behavior in order to gain a system's approval. Models of agent responsiveness, termed "strategic manipulation," analyze the…

Machine Learning · Computer Science 2019-05-13 Lily Hu , Nicole Immorlica , Jennifer Wortman Vaughan

Minimizing the relative inertia of a statistical group with respect to the inertia of the overall sample defines an unique point, the in-focus, which constitutes a context-dependent measure of typical group tendency, biased in comparison to…

Applications · Statistics 2010-04-06 François Bavaud
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