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Optimal Transport Divergences induced by Scoring Functions

2023-11-20 · Silvana M. Pesenti, Steven Vanduffel

We employ scoring functions, used in statistics for eliciting risk functionals, as cost functions in the Monge-Kantorovich (MK) optimal transport problem. This gives raise to a rich variety of novel asymmetric MK divergences, which subsume the family of Bregman-Wasserstein divergences. We show that for distributions on the real line, the comonotonic coupling is optimal for the majority of the new divergences. Specifically, we derive the optimal coupling of the MK divergences induced by functionals including the mean, generalised quantiles, expectiles, and shortfall measures. Furthermore, we show that while any elicitable law-invariant coherent risk measure gives raise to infinitely many MK divergences, the comonotonic coupling is simultaneously optimal. The novel MK divergences, which can be efficiently calculated, open an array of applications in robust stochastic optimisation. We derive sharp bounds on distortion risk measures under a Bregman-Wasserstein divergence constraint, and solve for cost-efficient payoffs under benchmark constraints.

📄 PDF Abstract BibTeX arXiv:2311.12183

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