Related papers: What Is the Alignment Tax?
The goal of multi-objective optimisation is to identify the Pareto front surface which is the set obtained by connecting the best trade-off points. Typically this surface is computed by evaluating the objectives at different points and then…
We study optimal risk sharing among $n$ agents endowed with distortion risk measures. Our model includes market frictions that can either represent linear transaction costs or risk premia charged by a clearing house for the agents. Risk…
In multi-objective optimization, a single decision vector must balance the trade-offs between many objectives. Solutions achieving an optimal trade-off are said to be Pareto optimal: these are decision vectors for which improving any one…
Risk aversion and insurance are two prominent and interconnected concepts in economics and finance. To explore their fundamental connection, we introduce risk-insurance parity, which associates various classes of insurance contracts with…
We consider the line planning problem in public transport in the Parametric City, an idealized model that captures typical scenarios by a (small) number of parameters. The Parametric City is rotation symmetric, but optimal line plans are…
A new multivariate distribution possessing arbitrarily parametrized and positively dependent univariate Pareto margins is introduced. Unlike the probability law of Asimit et al. (2010) [Asimit, V., Furman, E. and Vernic, R. (2010) On a…
While reasoning models have achieved remarkable success in complex reasoning tasks, their increasing power necessitates stringent safety measures. For safety alignment, the core challenge lies in the inherent trade-off between safety and…
This paper connects discrete optimal transport to a certain class of multi-objective optimization problems. In both settings, the decision variables can be organized into a matrix. In the multi-objective problem, the notion of Pareto…
We introduce a highly stylized, yet non trivial model of the economy, with a public and private sector coupled through a wealth tax and a redistribution policy. The model can be fully solved analytically, and allows one to address the…
We consider a market consisting of one safe and one risky asset, which offer constant investment opportunities. Taking into account both proportional transaction costs and linear price impact, we derive optimal rebalancing policies for…
This paper links matching markets with aligned preferences to optimal transport theory. We show that stability, efficiency, and fairness emerge as solutions to a parametric family of optimal transport problems. The parameter reflects…
We study fairness-accuracy tradeoffs when a single predictive model must serve multiple demographic groups. A useful tool for understanding this tradeoff is the fairness-accuracy (FA) Pareto frontier, which characterizes the set of models…
We study the Pareto frontier (optimal trade-off) between utility and separation, a fairness criterion requiring predictive independence from sensitive attributes conditional on the true outcome. Through an information-theoretic lens, we…
In process mining, alignments quantify the degree of deviation between an observed event trace and a business process model and constitute the most important conformance checking technique. We study the algorithmic complexity of computing…
A simple heuristic model, including the multiple exchanges between economic agents, is used to explain the mechanism of emerging and maintenance of social inequality in the market economy. The model allows calculating a density function of…
In this article we show that the payment flow of a linear tax on trading gains from a security with a semimartingale price process can be constructed for all c\`agl\`ad and adapted trading strategies. It is characterized as the unique…
Algorithmic fairness has emerged as an important consideration when using machine learning to make high-stakes societal decisions. Yet, improved fairness often comes at the expense of model accuracy. While aspects of the fairness-accuracy…
The problem of path planning for automated parking is usually presented as finding a collision-free path from initial to goal positions, where three out of four parking slot edges represent obstacles. We rethink the path planning problem…
A computational model for the distribution of wealth among the members of an ideal society is presented. It is determined that a realistic distribution of wealth depends upon two mechanisms: an asymmetric flux of wealth in trading…
Safety alignment is an essential research topic for real-world AI applications. Despite the multifaceted nature of safety and trustworthiness in AI, current safety alignment methods often focus on a comprehensive notion of safety. By…