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Strategic Classification Has a Missing Lever: Audit Risk

arXiv · AI, language, vision and robotics · article · Sep 18, 2026 · UTC

Strategic classification studies how a decision maker should choose a classifier when the agents being classified can adjust their features in response to it. In existing models, the classifier is the only instrument available to the decision maker, and therefore a feature that is predictive but easy to fake can only be down-weighted or discarded. However, in many settings the decision maker can also verify: lenders verify income, admissions offices check documents, and tax authorities audit returns. In this paper, we propose a model of strategic classification in which the firm jointly design

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First collected: 2026-09-23T12:01:45.602Z. This is not the publication date.