Related papers: Protected Income and Inequality Aversion

We consider the fair division of indivisible items among $n$ agents with additive non-negative normalized valuations, with the goal of obtaining high value guarantees, that is, close to the proportional share for each agent. We prove that…

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…

We study misspecified Bayesian learning in principal-agent relationships, where an agent is assessed by an evaluator and rewarded by the market. The agent's outcome depends on their innate ability, costly effort -- whose effectiveness is…

We study a revenue maximization problem in the context of social networks. Namely, we consider a model introduced by Alon, Mansour, and Tennenholtz (EC 2013) that captures inequity aversion, i.e., prices offered to neighboring vertices…

Research on promoting cooperation among autonomous, self-regarding agents has often focused on the bi-objective optimisation problem: minimising the total incentive cost while maximising the frequency of cooperation. However, the optimal…

Microscopic models describing a whole of economic interactions in a closed society are considered. The presence of a tax system combined with a redistribution process is taken into account, as well as the occurrence of tax evasion. In…

The adoption of automated, data-driven decision making in an ever expanding range of applications has raised concerns about its potential unfairness towards certain social groups. In this context, a number of recent studies have focused on…

We study the fair division of a collection of $m$ indivisible goods amongst a set of $n$ agents. Whilst envy-free allocations typically do not exist in the indivisible goods setting, envy-freeness can be achieved if some amount of a…

Managers, employers, policymakers, and others often seek to understand whether decisions are biased against certain groups. One popular analytic strategy is to estimate disparities after adjusting for observed covariates, typically with a…

Income segregation measures the extent to which households choose to live near other households with similar incomes. Sociologists theorize that income segregation can exacerbate the impacts of income inequality, and have developed indices…

Reward models are a key component of large language model alignment, serving as proxies for human preferences during training. However, existing evaluations focus primarily on broad instruction-following benchmarks, providing limited…

Effective machine learning models can automatically learn useful information from a large quantity of data and provide decisions in a high accuracy. These models may, however, lead to unfair predictions in certain sense among the population…

Behavioural economists have shown that people are often averse to inequality and will make choices to avoid unequal outcomes. In this paper, we consider how to allocate indivisible goods fairly so as to minimize inequality. We consider how…

Income inequality and redistribution policies are modeled with a minimal, endogenous model of a simple foraging economy. Significant income inequalities emerge from the model for populations of equally capable individuals presented with…

Machine Learning (ML) algorithms shape our lives. Banks use them to determine if we are good borrowers; IT companies delegate them recruitment decisions; police apply ML for crime-prediction, and judges base their verdicts on ML. However,…

An observer wants to understand a decision-maker's welfare from her choice. She believes that decisions are made under limited attention. We argue that the standard model of limited attention cannot help the observer greatly. To address…

Using CPS data for 1976 to 2022 we explore how wage inequality has evolved for married couples with both spouses working full time full year, and its impact on household income inequality. We also investigate how marriage sorting patterns…

We consider a participatory budgeting problem in which each voter submits a proposal for how to divide a single divisible resource (such as money or time) among several possible alternatives (such as public projects or activities) and these…

Decision maker's preferences are often captured by some choice functions which are used to rank prospects. In this paper, we consider ambiguity in choice functions over a multi-attribute prospect space. Our main result is a robust…

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…