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Dynamic Selection in Algorithmic Decision-making

Jin Li, Ye Luo, Xiaowei Zhang

arXiv 28 Aug 2021 · Econometrics

arXiv:2108.12547 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper identifies and addresses dynamic selection problems in online learning algorithms with endogenous data. In a contextual multi-armed bandit model, a novel bias (self-fulfilling bias) arises because the endogeneity of the data influences the choices of decisions, affecting the distribution of future data to be collected and analyzed. We propose an instrumental-variable-based algorithm to correct for the bias. It obtains true parameter values and attains low (logarithmic-like) regret levels. We also prove a central limit theorem for statistical inference. To establish the theoretical properties, we develop a general technique that untangles the interdependence between data and actions.

Citation extraction

43
references
54
in-text mentions
43
distinct cited
1
self-citations
27,472
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Mila Nambiar, David Simchi-Levi \ He Wang (2019) Dynamic Learning and Pricing with Model Misspecification0.73732100%
2Martin J. Wainwright (2019) High-Dimensional Statistics: A Non-Asymptotic Viewpoint. Cambridge University Press0.73732100%
3Roman Vershynin (2018) High-Dimensional Probability: An Introduction with Applications in Data Science. Cambridge University Press0.64422100%
4Ying Zhong, L. Jeff Hong \ Guangwu Liu (2021) Earning and Learning with Varying Cost0.64422100%
5Alexander Goldenshluger \ Assaf Zeevi (2013) A Linear Response Bandit Problem0.58531100%
6Hamsa Bastani, Mohsen Bayati \ Khashayar Khosravi (2021) Mostly Exploration-Free Algorithms for Contextual Bandits0.51121100%
7Gene H. Golub \ Charles F. Van Loan (2013) Matrix Computations0.51121100%
8Jin Li, Ye Luo \ Xiaowei Zhang (2021) Causal Reinforcement Learning: An Instrumental Variable Approach self0.51121100%
9Joseph G. Altonji, Todd E. Elder \ Christopher R. Taber (2005) Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools0.40511100%
10Isaiah Andrews, James Stock \ Liyang Sun (2019) Weak Instruments in IV Regression: Theory and Practice0.40511100%

Showing the top 10 of 43 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Dynamic Decision-Making under Model Misspecification0.40511