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48 results for welfare effects

Investors suffer welfare loss despite having better information.

problem Welfare loss among investors with absolute information advantages.
method Examined financial markets with heterogenous investors and objective measures of welfare.
result Investors incur welfare loss even with better information, revealing a double loss phenomenon.

The paper proposes a new policy for optimal treatment allocation based on quantile treatment effects.

problem Optimal treatment allocation policies that target distributional welfare, especially when individuals are heterogeneous.
method The approach involves allocating treatments based on the conditional quantile of individual treatment effects (QoTE), considering both prudent and negligent policymakers.
result The proposed minimax policies are robust to model uncertainty and can be generalized to various settings.

Study bridges welfare maximization and CATE estimation in policy learning.

problem Tackles the gap between empirical welfare maximization and conditional average treatment effect estimation in policy learning.
method Shows equivalence between EWM and least squares over reparameterized policy class, proposes regularization method.
result Both approaches are interchangeable under common conditions and share theoretical guarantees.

The paper analyzes fairness and social welfare in machine learning classification.

problem The relationship between fairness and social welfare in machine learning classification.
method Welfare-based analysis of classification and fairness regimes; algorithm for linear hyperplanes.
result More strict fairness criteria can worsen welfare outcomes for disadvantaged groups.

Our work extends Coase's theorem to settings with uncertainty, showing how to maximize social welfare through property rights and learning.

problem Theoretical models of externality often assume perfect knowledge, limiting practical solutions.
method We extend Coase's theorem to a two-player bandit setting with uncertainty, designing a learning policy to maximize social welfare.
result We show that property rights and learning can recover Coase's theorem in settings with uncertainty.

Homeownership boosts wealth and welfare compared to renting, according to new research.

problem The conventional wisdom that renting is better than owning a home.
method Block-bootstrap lifecycle simulation to compare homeownership and renting strategies.
result Homeownership generates more wealth and welfare gains than renting, especially for households with high labor income.

Framework for online resource allocation using social welfare functions.

problem Optimal allocation of resources over time steps in a population.
method Confidence sequence framework for SWF-based online learning and inference, valid for any monotonic, concave, and Lipschitz-continuous SWF.
result Achieves near-optimal regret of ildeO(n+nkT) ilde{O}(n+\sqrt{nkT}) for SWF-agnostic algorithm SWF-UCB.

This paper identifies and analyzes biases in risk-adjusted index weighting methods, affecting social welfare and market fairness.

problem Biases in risk-adjusted index weighting methods lead to tracking errors and fraud in indices and ETFs.
method Characterizes and analyzes the biases and adverse effects of risk-adjusted index weighting methods.
result These biases reduce social welfare and can enable harmful arbitrage activities.

Study copyright's impact on creative industries using AI-generated fonts.

problem Estimating supply and demand in creative industries with AI-generated content.
method Neural network embeddings, spatial regression, event-study analyses, structural model of supply and demand.
result Copyright can raise consumer welfare by encouraging product relocation.

The paper explores fairness, welfare, and equity in personalized pricing across various applications.

problem Interplay of fairness, welfare, and equity in personalized pricing based on customer features.
method Comprehensive literature review and observational metrics without underlying valuation distribution assumptions.
result Personalized pricing can expand access, improve welfare, and increase revenue or budget utilization.

Blockchain smart contracts reduce uncertainty but create price spreads.

problem Asymmetric information in traditional markets is reduced by blockchain technology, but it also creates price differences.
method Analyzed the impact of smart contracts on market segmentation and consumer welfare.
result Marginal innovation in smart contracts has non-monotonic effects on trading value and consumer welfare.

The paper addresses how to complete incomplete risk markets by iteratively enhancing welfare.

problem How to complete incomplete risk markets to enhance welfare.
method Iterative mechanism to complete the market while monotonically enhancing welfare.
result Iterative completion of incomplete risk markets can enhance welfare.

New framework tackles submodular welfare with multi-agent combinatorial bandits.

problem Maximizing total welfare among agents with shared constraints and submodular utilities under bandit feedback.
method Proposes an explore-then-commit strategy with randomized assignments for multi-agent combinatorial bandits.
result Achieves ildeO(T2/3) ilde{\mathcal{O}}(T^{2/3}) regret, first for partition-based submodular welfare problem under bandit feedback.

The paper tackles adaptive policy selection to maximize social welfare, achieving optimal regret bounds.

problem Maximizing social welfare through adaptive policy selection, considering both private utility and public revenue.
method The approach involves learning response functions through experimentation, deriving lower and upper bounds for regret, and using algorithms like Exp3.
result The algorithm achieves optimal regret bounds, showing that welfare maximization is harder than multi-armed bandit problems.

The paper analyzes strategic behavior in reinsurance transactions leading to Nash equilibria.

problem Strategic behavior in reinsurance transactions affecting risk aversion and welfare gains.
method Identifying Nash equilibria within a class of risk measures.
result At strictly beneficial Nash equilibria, agents appear homogeneous in risk preferences.

The paper automates policy learning for nonlinear welfare criteria using machine learning and debiasing techniques.

problem Learning optimal policies from observational data with nonlinear welfare criteria.
method Modeling a nonlinear welfare criterion with a utility function, estimating propensity scores with machine learning, and using sieve approximations and cross-validation for model selection.
result The proposed policy learning method satisfies oracle inequalities, providing theoretical guarantees on performance.

New job recommendation system improves job seekers' welfare through field experiments.

problem Current job recommendation systems focus on clicks and applications, not job seekers' welfare.
method Developed a job-search model with two dimensions: utility and success probability. Conducted field experiments to validate model predictions.
result Welfare-optimal job recommendation algorithms outperform existing approaches and perform close to the benchmark.

The paper develops an economic foundation for multi-agent learning in markets.

problem Learning dynamics in markets with strategic externalities.
method A two-phase incentive mechanism that estimates and uses implementable transfers to steer long-run dynamics.
result The mechanism achieves sublinear social-welfare regret and asymptotically optimal welfare under mild rationality and exploration conditions.

The study examines how full information and rationality affect portfolio decisions in uncertain markets.

problem Analyzing welfare effects of sub-optimal investment strategies in uncertain financial markets.
method Quantitative analysis of Constant Relative Risk Aversion investor behavior under parameter uncertainty.
result Full information and predictability significantly impact utility effects, with learning effects being marginal.

The so called "globalization" process (i.e. the inexorable integration of markets, currencies, nation-states, technologies and the intensification of consciousness of the world as a whole) has a behavior exactly equivalent to a system that is tending to a maximum entropy state. This globalization process obeys a collec…

2007-10-05abs ↗pdf ↗

Existence of incomplete Radner equilibrium with endogenous noise tracker.

problem Existence of incomplete Radner equilibrium in a model with endogenous noise tracker.
method Proved existence through a coupled system of ODEs, reduced to two coupled ODEs.
result Endogenous noise tracker leads to higher aggregate welfare for large stock supply.

New welfare-based fairness notions align with existing error rate balance and predictive parity.

problem Aligning fairness notions with welfare-based criteria.
method Discussing and establishing conditions for envy freeness and prejudice freeness.
result Envy freeness and prejudice freeness are equivalent to error rate balance and predictive parity.

The paper critiques UBI as ineffective for addressing technological unemployment.

problem Technological unemployment due to automation.
method Empirical data analysis and theoretical projections of UBI's impact.
result UBI is not an effective solution for improving living standards and employability among displaced workers.

BRACE addresses noncompliance in bandits, offering methods for recommendation and treatment policies.

problem Noncompliance in bandit problems complicates learning objectives and treatment effects.
method BRACE formalizes objective-choice, identifies direct-control regimes, and proposes a phase-doubling algorithm for IV inversion.
result BRACE delivers valid policy values and structural uncertainty, even under weak identification and homogeneity failure.

Adopting a zonal structure of electricity market requires specification of zones' borders. In this paper we use social welfare as the measure to assess quality of various zonal divisions. The social welfare is calculated by Market Coupling algorithm. The analyzed divisions are found by the usage of extended Locational …

2014-05-05abs ↗pdf ↗

Methodology projects forward electricity contract prices using market equilibrium and social welfare optimization.

problem Quantifying forward contract risks and optimizing revenue/cost for generators/load/traders.
method Market equilibrium and social welfare optimization; linear programming for total agents' welfare.
result Equilibrium contract price corresponds to the dual variable of equilibrium constraints.

The paper proposes a method to estimate complex models using machine learning.

problem Estimating the impact of welfare reform on women's welfare participation.
method Regularized orthogonal machine learning for non-linear semiparametric models.
result The proposed Lasso estimator converges at the oracle rate, preserving the single index property.

This paper tackles no-regret learning for fair multi-agent social welfare optimization.

problem Maximizing social welfare in a fair manner for multiple agents.
method Developed algorithms for stochastic and adversarial multi-agent settings, proving regret bounds and tightness.
result Achieved no-regret learning for fair multi-agent social welfare optimization in various settings.

Privacy subsidy found in market trading with noisy direction signals.

problem Analyzing welfare and bid-ask spread in a market with privacy mechanisms.
method Closed-form derivation of bid-ask spread and welfare under flip-noise direction observation.
result Privacy subsidy of μηΔμηΔ from liquidity pool to traders, robust across models.

Designs ranking models to consider long-term consequences, improving online discourse.

problem Ranking models fail to foresee long-term negative impacts.
method Introduces Markov decision processes and weighted sampling for optimal consequential rankings; develops gradient-based algorithm for practical implementation.
result Optimal consequential rankings can be approximated efficiently using parameterized models.

Study shows online learning algorithms incentivize low-quality content, proposing new algorithms to improve quality.

problem Online learning algorithms in content recommender systems incentivize producers to create low-quality content.
method Analyzed the game between producers and content quality, designed new learning algorithms to incentivize high effort and quality.
result New algorithms incentivize producers to invest high effort and achieve high user welfare, improving content quality.

Examines optimal risk sharing with realistic risk attitudes, finding risk seeking in certain subdomains.

problem Optimal risk sharing with empirically realistic risk attitudes.
method Allows for risk-seeking agents, generalizes expected utility, and uses counter-monotonic improvement theorem.
result First empirical results on optimal risk sharing with realistic risk attitudes.

The paper explores fair machine learning policies for balancing competing objectives in noisy data.

problem Balancing competing objectives in noisy data.
method Analyzes a class of policies that trace an empirical Pareto frontier based on learned scores.
result Characterizes optimal strategies and bounds Pareto errors due to score inaccuracies.

The paper starts with a brief review of present understanding of income distributions; especially with regard to recent work in the field of econophysics that draws parallels between income, wealth and energy distributions. Examples of alternative energy distributions found in physical systems are discussed, and how th…

2004-08-10abs ↗pdf ↗

Supply uncertainty leads to inefficient supply chain network formation.

problem How supply uncertainty affects supply chain network structure.
method Modeling a supply chain network with uncertain yield, where retailers and suppliers must form relationships and compete.
result Retailers tend to link to too few suppliers, leading to insufficient diversification of the supply base.