Generalized Causal Tree for Uplift Modeling

• URL: http://arxiv.org/abs/2202.02416v2
• Date: Tue, 19 Dec 2023 14:03:43 GMT
• Title: Generalized Causal Tree for Uplift Modeling
• Authors: Preetam Nandy, Xiufan Yu, Wanjun Liu, Ye Tu, Kinjal Basu, Shaunak Chatterjee
• Abstract summary: Uplift modeling is crucial in various applications ranging from marketing and policy-making to personalized recommendations. The main objective is to learn optimal treatment allocations for a heterogeneous population. We propose a generalization of tree-based approaches to tackle multiple discrete and continuous-valued treatments.
• Score: 7.614863322262727
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Uplift modeling is crucial in various applications ranging from marketing and policy-making to personalized recommendations. The main objective is to learn optimal treatment allocations for a heterogeneous population. A primary line of existing work modifies the loss function of the decision tree algorithm to identify cohorts with heterogeneous treatment effects. Another line of work estimates the individual treatment effects separately for the treatment group and the control group using off-the-shelf supervised learning algorithms. The former approach that directly models the heterogeneous treatment effect is known to outperform the latter in practice. However, the existing tree-based methods are mostly limited to a single treatment and a single control use case, except for a handful of extensions to multiple discrete treatments. In this paper, we propose a generalization of tree-based approaches to tackle multiple discrete and continuous-valued treatments. We focus on a generalization of the well-known causal tree algorithm due to its desirable statistical properties, but our generalization technique can be applied to other tree-based approaches as well. The efficacy of our proposed method is demonstrated using experiments and real data examples.

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