{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/learning-classifiers-that-induce-markets","title":"Learning Classifiers That Induce Markets","arxiv_id":"2502.20012","date":"2025-02-27","proceeding":null,"authors":["Yonatan Sommer","Ivri Hikri","Lotan Amit","Nir Rosenfeld"],"abstract":"When learning is used to inform decisions about humans, such as for loans, hiring, or admissions, this can incentivize users to strategically modify their features to obtain positive predictions. A key assumption is that modifications are costly, and are governed by a cost function that is exogenous and predetermined. We challenge this assumption, and assert that the deployment of a classifier is what creates costs. Our idea is simple: when users seek positive predictions, this creates demand for important features; and if features are available for purchase, then a market will form, and competition will give rise to prices. We extend the strategic classification framework to support this notion, and study learning in a setting where a classifier can induce a market for features. We present an analysis of the learning task, devise an algorithm for computing market prices, propose a differentiable learning framework, and conduct experiments to explore our novel setting and approach.","url_abs":"https://arxiv.org/abs/2502.20012v1","url_pdf":"https://arxiv.org/pdf/2502.20012v1.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"learning-classifiers-that-induce-markets","repo_url":"https://github.com/MASC-ICML/MASC","is_official":1,"mentioned_in_paper":0,"mentioned_in_github":0,"framework":"pytorch","reach":null}],"tasks":[],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":"https://app.syntology.ai/?focus=2502.20012","mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}