Personalized decision making – A conceptual introduction

Mueller Scott () and Pearl Judea ()
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Mueller Scott: Computer Science Department, University of California, Los Angeles, California, United States
Pearl Judea: Computer Science Department, University of California, Los Angeles, California, United States

Journal of Causal Inference, 2023, vol. 11, issue 1, 13

Abstract: Personalized decision making targets the behavior of a specific individual, while population-based decision making concerns a subpopulation resembling that individual. This article clarifies the distinction between the two and explains why the former leads to more informed decisions. We further show that by combining experimental and observational studies, we can obtain valuable information about individual behavior and, consequently, improve decisions over those obtained from experimental studies alone. In particular, we show examples where such a combination discriminates between individuals who can benefit from a treatment and those who cannot – information that would not be revealed by experimental studies alone. We outline areas where this method could be of benefit to both policy makers and individuals involved.

Keywords: causality; individual treatment effect; conditional average treatment effect; PNS; monotonicity (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:causin:v:11:y:2023:i:1:p:13:n:1

DOI: 10.1515/jci-2022-0050

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