Fairness Behind a Veil of Ignorance: A Welfare Analysis for Automated Decision Making

We draw attention to an important, yet largely overlooked aspect of evaluating fairness for automated decision making systems---namely risk and welfare considerations. Our proposed family of measures corresponds to the long-established formulations of cardinal social welfare in economics, and is justified by the Rawlsian conception of fairness behind a veil of ignorance. The convex formulation of our welfare-based measures of fairness allows us to integrate them as a constraint into any convex loss minimization pipeline. Our empirical analysis reveals interesting trade-offs between our proposal and (a) prediction accuracy, (b) group discrimination, and (c) Dwork et al.'s notion of individual fairness. Furthermore and perhaps most importantly, our work provides both heuristic justification and empirical evidence suggesting that a lower-bound on our measures often leads to bounded inequality in algorithmic outcomes; hence presenting the first computationally feasible mechanism for bounding individual-level inequality.Comment: Conference: Thirty-second Conference on Neural Information Processing Systems (NIPS 2018

THE WAIT-AND-SEE OPTION IN ASCENDING PRICE AUCTIONS

Cake-cutting protocols aim at dividing a ``cake'' (i.e., a divisible resource) and assigning the resulting portions to several players in a way that each of the players feels to have received a ``fair'' amount of the cake. An important notion of fairness is envy-freeness: No player wishes to switch the portion of the cake received with another player's portion. Despite intense efforts in the past, it is still an open question whether there is a \emph{finite bounded} envy-free cake-cutting protocol for an arbitrary number of players, and even for four players. We introduce the notion of degree of guaranteed envy-freeness (DGEF) as a measure of how good a cake-cutting protocol can approximate the ideal of envy-freeness while keeping the protocol finite bounded (trading being disregarded). We propose a new finite bounded proportional protocol for any number n \geq 3 of players, and show that this protocol has a DGEF of 1 + \lceil (n^2)/2 \rceil. This is the currently best DGEF among known finite bounded cake-cutting protocols for an arbitrary number of players. We will make the case that improving the DGEF even further is a tough challenge, and determine, for comparison, the DGEF of selected known finite bounded cake-cutting protocols.Comment: 37 pages, 4 figure