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Paper · arXiv

Revisiting Fairness Impossibility with Endogenous Behavior

In many real-world settings, institutions can and do adjust the consequences attached to algorithmic classification decisions, such as the size of fines, sentence lengths, or benefit levels. We refer to these consequences as the stakes associated with classification. These stakes can give rise to behavioral responses to classification, as people adjust their actions in anticipation of how they will be classified. Much of the algorithmic fairness literature evaluates classification outcomes while holding behavior fixed, treating behavioral differences across groups as exogenous features of the environment. Under this assumption, the stakes of classification play no role in shaping outcomes...

AuthorsElizabeth Maggie Penn, John W. Patty
Primary categorycs.GT
Published7 April 2026
Last updated at source7 April 2026
cs.GTcs.LGecon.TH
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