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Optimal Transport for Treatment Effect Estimation

Neural Information Processing Systems

Estimating conditional average treatment effect from observational data is highly challenging due to the existence of treatment selection bias. Prevalent methods mitigate this issue by aligning distributions of different treatment groups in the latent space. However, there are two critical problems that these methods fail to address: (1) mini-batch sampling effects (MSE), which causes misalignment in non-ideal mini-batches with outcome imbalance and outliers; (2) unobserved confounder effects (UCE), which results in inaccurate discrepancy calculation due to the neglect of unobserved confounders. To tackle these problems, we propose a principled approach named Entire Space CounterFactual Regression (ESCFR), which is a new take on optimal transport in the context of causality. Specifically, based on the framework of stochastic optimal transport, we propose a relaxed masspreserving regularizer to address the MSE issue and design a proximal factual outcome regularizer to handle the UCE issue. Extensive experiments demonstrate that our proposed ESCFR can successfully tackle the treatment selection bias and achieve significantly better performance than state-of-the-art methods.






Robust X-Learner: Breaking the Curse of Imbalance and Heavy Tails via Robust Cross-Imputation

arXiv.org Machine Learning

Estimating Heterogeneous Treatment Effects (HTE) in industrial applications such as AdTech and healthcare presents a dual challenge: extreme class imbalance and heavy-tailed outcome distributions. While the X-Learner framework effectively addresses imbalance through cross-imputation, we demonstrate that it is fundamentally vulnerable to "Outlier Smearing" when reliant on Mean Squared Error (MSE) minimization. In this failure mode, the bias from a few extreme observations ("whales") in the minority group is propagated to the entire majority group during the imputation step, corrupting the estimated treatment effect structure. To resolve this, we propose the Robust X-Learner (RX-Learner). This framework integrates a redescending ฮณ-divergence objective -- structurally equivalent to the Welsch loss under Gaussian assumptions -- into the gradient boosting machinery. We further stabilize the non-convex optimization using a Proxy Hessian strategy grounded in Majorization-Minimization (MM) principles. Empirical evaluation on a semi-synthetic Criteo Uplift dataset demonstrates that the RX-Learner reduces the Precision in Estimation of Heterogeneous Effect (PEHE) metric by 98.6% compared to the standard X-Learner, effectively decoupling the stable "Core" population from the volatile "Periphery".


Dimension-reduced outcome-weighted learning for estimating individualized treatment regimes in observational studies

arXiv.org Machine Learning

Individualized treatment regimes (ITRs) aim to improve clinical outcomes by assigning treatment based on patient-specific characteristics. However, existing methods often struggle with high-dimensional covariates, limiting accuracy, interpretability, and real-world applicability. We propose a novel sufficient dimension reduction approach that directly targets the contrast between potential outcomes and identifies a low-dimensional subspace of the covariates capturing treatment effect heterogeneity. This reduced representation enables more accurate estimation of optimal ITRs through outcome-weighted learning. To accommodate observational data, our method incorporates kernel-based covariate balancing, allowing treatment assignment to depend on the full covariate set and avoiding the restrictive assumption that the subspace sufficient for modeling heterogeneous treatment effects is also sufficient for confounding adjustment. We show that the proposed method achieves universal consistency, i.e., its risk converges to the Bayes risk, under mild regularity conditions. We demonstrate its finite sample performance through simulations and an analysis of intensive care unit sepsis patient data to determine who should receive transthoracic echocardiography.


Barriers to AI Adoption: Image Concerns at Work

arXiv.org Artificial Intelligence

Concerns about how workers are perceived can deter effective collaboration with artificial intelligence (AI). In a field experiment on a large online labor market, I hired 450 U.S.-based remote workers to complete an image-categorization job assisted by AI recommendations. Workers were incentivized by the prospect of a contract extension based on an HR evaluator's feedback. I find that workers adopt AI recommendations at lower rates when their reliance on AI is visible to the evaluator, resulting in a measurable decline in task performance. The effects are present despite a conservative design in which workers know that the evaluator is explicitly instructed to assess expected accuracy on the same AI-assisted task. This reduction in AI reliance persists even when the evaluator is reassured about workers' strong performance history on the platform, underscoring how difficult these concerns are to alleviate. Leveraging the platform's public feedback feature, I introduce a novel incentive-compatible elicitation method showing that workers fear heavy reliance on AI signals a lack of confidence in their own judgment, a trait they view as essential when collaborating with AI.


Save, Revisit, Retain: A Scalable Framework for Enhancing User Retention in Large-Scale Recommender Systems

arXiv.org Artificial Intelligence

User retention is a critical objective for online platforms like Pinterest, as it strengthens user loyalty and drives growth through repeated engagement. A key indicator of retention is revisitation, i.e., when users return to view previously saved content, a behavior often sparked by personalized recommendations and user satisfaction. However, modeling and optimizing revisitation poses significant challenges. One core difficulty is accurate attribution: it is often unclear which specific user actions or content exposures trigger a revisit, since many confounding factors (e.g., content quality, user interface, notifications, or even changing user intent) can influence return behavior. Additionally, the scale and timing of revisitations introduce further complexity; users may revisit content days or even weeks after their initial interaction, requiring the system to maintain and associate extensive historical records across millions of users and sessions. These complexities render existing methods insufficient for robustly capturing and optimizing long-term revisitation. To address these gaps, we introduce a novel, lightweight, and interpretable framework for modeling revisitation behavior and optimizing long-term user retention in Pinterest's search-based recommendation context. By defining a surrogate attribution process that links saves to subsequent revisitations, we reduce noise in the causal relationship between user actions and return visits. Our scalable event aggregation pipeline enables large-scale analysis of user revisitation patterns and enhances the ranking system's ability to surface items with high retention value. Deployed on Pinterest's Related Pins surface to serve 500+ million users, the framework led to a significant lift of 0.1% in active users without additional computational costs.