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Free, publicly-accessible full text available May 30, 2026
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Free, publicly-accessible full text available October 29, 2025
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Algorithms provide powerful tools for detecting and dissecting human bias and error. Here, we develop machine learning methods to to analyze how humans err in a particular high-stakes task: image interpretation. We leverage a unique dataset of 16,135,392 human predictions of whether a neighborhood voted for Donald Trump or Joe Biden in the 2020 US election, based on a Google Street View image. We show that by training a machine learning estimator of the Bayes optimal decision for each image, we can provide an actionable decomposition of human error into bias, variance, and noise terms, and further identify specific features (like pickup trucks) which lead humans astray. Our methods can be applied to ensure that human-in-the-loop decision-making is accurate and fair and are also applicable to black-box algorithmic systems.more » « less
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Many high-stakes policies can be modeled as a sequence of decisions along a pipeline. We are interested in auditing such pipelines for both Our empirical focus is on policy decisions made by the New efficiency and equity. Using a dataset of over 100,000 crowdsourced resident requests for po- life-tentially hazardous tree maintenance in New York City, we observe a sequence of city government decisions about whether to inspect and work on a reported incident. At each decision in the pipeline, we define parity definitions and tests to identify inefficient, inequitable treatment. Disparities in resource allocation and scheduling across census tracts are reported as preliminary results.more » « less
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Ride-hailing marketplaces like Uber and Lyft use dynamic pricing, often called surge, to balance the supply of available drivers with the demand for rides. We study driver-side payment mechanisms for such marketplaces, presenting the theoretical foundation that has informed the design of Uber’s new additive driver surge mechanism. We present a dynamic stochastic model to capture the impact of surge pricing on driver earnings and their strategies to maximize such earnings. In this setting, some time periods (surge) are more valuable than others (nonsurge), and therefore trips of different time lengths vary in the induced driver opportunity cost. First, we show that multiplicative surge, historically the standard on ride-hailing platforms, is not incentive compatible in a dynamic setting. We then propose a structured, incentive-compatible pricing mechanism. This closed-form mechanism has a simple form and is well approximated by Uber’s new additive surge mechanism. Finally, through both numerical analysis and real data from a ride-hailing marketplace, we show that additive surge is more incentive compatible in practice than is multiplicative surge. This paper was accepted by David Simchi-Levi, revenue management and market analytics.more » « less