# Alternative Microfoundations for Strategic Classification

arXiv: https://arxiv.org/abs/2106.12705 · HTML: https://mlsanity.com/paper/2106.12705/

## Key facts

- Cited by 47 papers in the map (data through 14 Oct 2026).
- Builds on 22 of its 47 references that are in the map.
- First posted on arXiv 24 Jun 2021.

## Builds on (most cited first, 22 of 22)

- [Equality of Opportunity in Supervised Learning](https://mlsanity.com/paper/1610.02413/) (2016)
- [Performative Prediction](https://mlsanity.com/paper/2002.06673/) (2020)
- [Strategic Classification](https://mlsanity.com/paper/1506.06980/) (2015)
- [Robust Estimators in High Dimensions without the Computational Intractability](https://mlsanity.com/paper/1604.06443/) (2016)
- [Strategic Classification from Revealed Preferences](https://mlsanity.com/paper/1710.07887/) (2017)
- [The Social Cost of Strategic Classification](https://mlsanity.com/paper/1808.08460/) (2018)
- [Outside the Echo Chamber: Optimizing the Performative Risk](https://mlsanity.com/paper/2102.08570/) (2021)
- [Stochastic Optimization for Performative Prediction](https://mlsanity.com/paper/2006.06887/) (2020)
- [Strategic Classification is Causal Modeling in Disguise](https://mlsanity.com/paper/1910.10362/) (2019)
- [Performative Prediction in a Stateful World](https://mlsanity.com/paper/2011.03885/) (2020)
- [How Do Classifiers Induce Agents To Invest Effort Strategically?](https://mlsanity.com/paper/1807.05307/) (2018)
- [The Disparate Effects of Strategic Manipulation](https://mlsanity.com/paper/1808.08646/) (2018)
- [Strategic Classification in the Dark](https://mlsanity.com/paper/2102.11592/) (2021)
- [Causal Strategic Linear Regression](https://mlsanity.com/paper/2002.10066/) (2020)
- [Strategic Classification Made Practical](https://mlsanity.com/paper/2103.01826/) (2021)
- [Information Discrepancy in Strategic Learning](https://mlsanity.com/paper/2103.01028/) (2021)
- [Maximizing Welfare with Incentive-Aware Evaluation Mechanisms](https://mlsanity.com/paper/2011.01956/) (2020)
- [Decisions, Counterfactual Explanations and Strategic Behavior](https://mlsanity.com/paper/2002.04333/) (2020)
- [The Role of Randomness and Noise in Strategic Classification](https://mlsanity.com/paper/2005.08377/) (2020)
- [Manipulation-Proof Machine Learning](https://mlsanity.com/paper/2004.03865/) (2020)
- [Price of Transparency in Strategic Machine Learning](https://mlsanity.com/paper/1610.08210/) (2016)
- [Automated Mechanism Design for Classification with Partial Verification](https://mlsanity.com/paper/2104.05182/) (2021)

## Built on by (most cited first, 30 of 47)

- [Performative Prediction: Past and Future](https://mlsanity.com/paper/2310.16608/) (2023)
- [Performative Power](https://mlsanity.com/paper/2203.17232/) (2022)
- [Regret Minimization with Performative Feedback](https://mlsanity.com/paper/2202.00628/) (2022)
- [Anticipating Performativity by Predicting from Predictions](https://mlsanity.com/paper/2208.07331/) (2022)
- [Modeling Content Creator Incentives on Algorithm-Curated Platforms](https://mlsanity.com/paper/2206.13102/) (2022)
- [Generalized Strategic Classification and the Case of Aligned Incentives](https://mlsanity.com/paper/2202.04357/) (2022)
- [Supply-Side Equilibria in Recommender Systems](https://mlsanity.com/paper/2206.13489/) (2022)
- [How to Learn when Data Gradually Reacts to Your Model](https://mlsanity.com/paper/2112.07042/) (2021)
- [Causal Strategic Classification: A Tale of Two Shifts](https://mlsanity.com/paper/2302.06280/) (2023)
- [Strategic Classification under Unknown Personalized Manipulation](https://mlsanity.com/paper/2305.16501/) (2023)
- [Learning Losses for Strategic Classification](https://mlsanity.com/paper/2203.13421/) (2022)
- [Plug-in Performative Optimization](https://mlsanity.com/paper/2305.18728/) (2023)
- [Fundamental Bounds on Online Strategic Classification](https://mlsanity.com/paper/2302.12355/) (2023)
- [Learnability Gaps of Strategic Classification](https://mlsanity.com/paper/2402.19303/) (2024)
- [Bayesian Persuasion for Algorithmic Recourse](https://mlsanity.com/paper/2112.06283/) (2021)
- [Strategic Classification with Graph Neural Networks](https://mlsanity.com/paper/2205.15765/) (2022)
- [One-Shot Strategic Classification Under Unknown Costs](https://mlsanity.com/paper/2311.02761/) (2023)
- [Bayesian Strategic Classification](https://mlsanity.com/paper/2402.08758/) (2024)
- [Performative Recommendation: Diversifying Content via Strategic Incentives](https://mlsanity.com/paper/2302.04336/) (2023)
- [Non-linear Welfare-Aware Strategic Learning](https://mlsanity.com/paper/2405.01810/) (2024)
- [Accounting for AI and Users Shaping One Another: The Role of Mathematical Models](https://mlsanity.com/paper/2404.12366/) (2024)
- [Strategic Apple Tasting](https://mlsanity.com/paper/2306.06250/) (2023)
- [Automating Data Annotation under Strategic Human Agents: Risks and Potential Solutions](https://mlsanity.com/paper/2405.08027/) (2024)
- [Addressing Strategic Manipulation Disparities in Fair Classification](https://mlsanity.com/paper/2205.10842/) (2022)
- [Sequential Strategic Screening](https://mlsanity.com/paper/2301.13397/) (2023)
- [Learning under Imitative Strategic Behavior with Unforeseeable Outcomes](https://mlsanity.com/paper/2405.01797/) (2024)
- [Revisiting Online Learning Approach to Inverse Linear Optimization: A Fenchel-Young Loss Perspective and Gap-Dependent Regret Analysis](https://mlsanity.com/paper/2501.13648/) (2025)
- [Performative Validity of Recourse Explanations](https://mlsanity.com/paper/2506.15366/) (2025)
- [Classification Under Strategic Self-Selection](https://mlsanity.com/paper/2402.15274/) (2024)
- [Algorithmic Decision-Making under Agents with Persistent Improvement](https://mlsanity.com/paper/2405.01807/) (2024)

## Abstract (arXiv)

When reasoning about strategic behavior in a machine learning context it is tempting to combine standard microfoundations of rational agents with the statistical decision theory underlying classification. In this work, we argue that a direct combination of these standard ingredients leads to brittle solution concepts of limited descriptive and prescriptive value. First, we show that rational agents with perfect information produce discontinuities in the aggregate response to a decision rule that we often do not observe empirically. Second, when any positive fraction of agents is not perfectly strategic, desirable stable points -- where the classifier is optimal for the data it entails -- cease to exist. Third, optimal decision rules under standard microfoundations maximize a measure of negative externality known as social burden within a broad class of possible assumptions about agent behavior. Recognizing these limitations we explore alternatives to standard microfoundations for binary classification. We start by describing a set of desiderata that help navigate the space of possible assumptions about how agents respond to a decision rule. In particular, we analyze a natural constraint on feature manipulations, and discuss properties that are sufficient to guarantee the robust existence of stable points. Building on these insights, we then propose the noisy response model. Inspired by smoothed analysis and empirical observations, noisy response incorporates imperfection in the agent responses, which we show mitigates the limitations of standard microfoundations. Our model retains analytical tractability, leads to more robust insights about stable points, and imposes a lower social burden at optimality.