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Risk-sensitive planning aims to identify policies maximizing some tail-focused metrics in Markov Decision Processes (MDPs). Such an optimization task can be very costly for the most widely used and interpretable metrics such as threshold…

Machine Learning · Statistics 2025-07-09 Alexandre Marthe , Samuel Bounan , Aurélien Garivier , Claire Vernade

Making decisions freely presupposes that there is some indeterminacy in the environment and in the decision making engine. The former is reflected on the behavioral changes due to communicating: few changes indicate rigid environments;…

Artificial Intelligence · Computer Science 2020-09-23 Luis A. Pineda

Evaluating hypothetical statements about how the world would be had a different course of action been taken is arguably one key capability expected from modern AI systems. Counterfactual reasoning underpins discussions in fairness, the…

Machine Learning · Computer Science 2022-10-04 Kevin Xia , Yushu Pan , Elias Bareinboim

Counterfactual explanations play a pivotal role in explainable artificial intelligence (XAI) by offering intuitive, human-understandable alternatives that elucidate machine learning model decisions. Despite their significance, existing…

Machine Learning · Computer Science 2025-11-06 Oleksii Furman , Ulvi Movsum-zada , Patryk Marszalek , Maciej Zięba , Marek Śmieja

We develop a spectral approach for identifying and estimating average counterfactual outcomes under a low-rank factor model with short panel data and general outcome missingness patterns. Applications include event studies and studies of…

Econometrics · Economics 2025-12-30 Lihua Lei , Brad Ross

Counterfactual reasoning from logged data has become increasingly important for many applications such as web advertising or healthcare. In this paper, we address the problem of learning stochastic policies with continuous actions from the…

Machine Learning · Statistics 2025-02-24 Houssam Zenati , Alberto Bietti , Matthieu Martin , Eustache Diemert , Pierre Gaillard , Julien Mairal

Machine learning algorithms generally suffer from a problem of explainability. Given a classification result from a model, it is typically hard to determine what caused the decision to be made, and to give an informative explanation. We…

Machine Learning · Computer Science 2019-06-26 Jonathan Moore , Nils Hammerla , Chris Watkins

Standard measures of effect, including the risk ratio, the odds ratio, and the risk difference, are associated with a number of well-described shortcomings, and no consensus exists about the conditions under which investigators should…

Methodology · Statistics 2019-10-08 Anders Huitfeldt , Andrew Goldstein , Sonja A. Swanson

To understand the black-box characteristics of deep networks, counterfactual explanation that deduces not only the important features of an input space but also how those features should be modified to classify input as a target class has…

Machine Learning · Computer Science 2022-08-15 Hong-Gyu Jung , Sin-Han Kang , Hee-Dong Kim , Dong-Ok Won , Seong-Whan Lee

Machine learning is increasingly applied in high-stakes decision making that directly affect people's lives, and this leads to an increased demand for systems to explain their decisions. Explanations often take the form of counterfactuals,…

Machine Learning · Computer Science 2021-05-20 Maximilian Schleich , Zixuan Geng , Yihong Zhang , Dan Suciu

We review the nature of some well-known phenomena such as volatility smiles, convexity adjustments and parallel derivative markets. We propose that the market is incomplete and postulate the existence of intrinsic risks in every contingent…

Pricing of Securities · Quantitative Finance 2014-08-19 Truc Le

Counterfactual, serving as one emerging type of model explanation, has attracted tons of attentions recently from both industry and academia. Different from the conventional feature-based explanations (e.g., attributions), counterfactuals…

Machine Learning · Computer Science 2022-08-08 Fan Yang , Qizhang Feng , Kaixiong Zhou , Jiahao Chen , Xia Hu

Marginal expected shortfall is unquestionably one of the most popular systemic risk measures. Studying its extreme behaviour is particularly relevant for risk protection against severe global financial market downturns. In this context,…

Statistics Theory · Mathematics 2023-04-18 Simone A. Padoan , Stefano Rizzelli , Matteo Schiavone

Counterfactual explanation methods provide information on how feature values of individual observations must be changed to obtain a desired prediction. Despite the increasing amount of proposed methods in research, only a few…

Machine Learning · Statistics 2023-09-19 Susanne Dandl , Andreas Hofheinz , Martin Binder , Bernd Bischl , Giuseppe Casalicchio

In this paper we present a framework for risk-averse model predictive control (MPC) of linear systems affected by multiplicative uncertainty. Our key innovation is to consider time-consistent, dynamic risk metrics as objective functions to…

Optimization and Control · Mathematics 2015-11-24 Yin-Lam Chow , Marco Pavone

With machine learning models being increasingly applied to various decision-making scenarios, people have spent growing efforts to make machine learning models more transparent and explainable. Among various explanation techniques,…

Machine Learning · Computer Science 2020-08-20 Furui Cheng , Yao Ming , Huamin Qu

Model-free knockoffs is a recently proposed technique for identifying covariates that is likely to have an effect on a response variable. The method is an efficient method to control the false discovery rate in hypothesis tests for separate…

Methodology · Statistics 2019-03-29 Lars Holden , Kristoffer Hellton

In high-stake domains such as healthcare and hiring, the role of machine learning (ML) in decision-making raises significant fairness concerns. This work focuses on Counterfactual Fairness (CF), which posits that an ML model's outcome on…

Machine Learning · Computer Science 2025-01-23 Zeyu Zhou , Tianci Liu , Ruqi Bai , Jing Gao , Murat Kocaoglu , David I. Inouye

Providing explanations about how machine learning algorithms work and/or make particular predictions is one of the main tools that can be used to improve their trusworthiness, fairness and robustness. Among the most intuitive type of…

Machine Learning · Computer Science 2024-04-12 Rubén Ruiz-Torrubiano

We introduce SparcAssist, a general-purpose risk assessment tool for the machine learning models trained for language tasks. It evaluates models' risk by inspecting their behavior on counterfactuals, namely out-of-distribution instances…

Computation and Language · Computer Science 2022-05-04 Zijian Zhang , Vinay Setty , Avishek Anand
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