Profit-Based Counterfactual Explanations for Product Improvement: A Case Study of Manga Sales in Japan
Counterfactual explanation (CE) is widely used to enhance the interpretability of machine learning models and support data-driven decision-making based on model predictions. However, existing CE methods typically require two exogenously specified inputs: a desired output value (target) and a distance function that quantifies changes in explanatory variables. In regression settings, neither the validity of target specification nor the practical interpretation of the distance metric has been sufficiently addressed. Furthermore, most existing CE methods focus on altering predictions rather than optimizing a decision objective, even though real-world decision-making often requires explicit objective maximization. To address these limitations, we formulate CE as a profit maximization problem in management and marketing contexts and propose a framework termed profit-based counterfactual explanation (PBCE). PBCE eliminates the need for exogenous target specification by directly maximizing profit as the primary optimization objective. Concurrently, the distance term is reinterpreted as the cost of modifying product attributes, providing a clear and economically grounded interpretation.
Code (1)
Similar Papers 제목 키워드 기반
Explaining Groups of Instances Counterfactually for XAI: A Use Case, Algorithm and User Study for Group-Counterfactuals
Counterfactual explanations are an increasingly popular form of post hoc explanation due to their (i) applicability across problem domains, (ii) proposed legal compliance (e.g., with GDPR), and (iii) reliance on the cont…
counterfactualExplainable Artificial Intelligence (XAI)Generating Likely Counterfactuals Using Sum-Product Networks
The need to explain decisions made by AI systems is driven by both recent regulation and user demand. The decisions are often explainable only post hoc. In counterfactual explanations, one may ask what constitutes the be…
counterfactualCounterfactual ExplanationPrompt-Counterfactual Explanations for Generative AI System Behavior
As generative AI systems become integrated into real-world applications, organizations increasingly need to be able to understand and interpret their behavior. In particular, decision-makers need to understand what cause…
Prompt EngineeringExplaining Recommendation System Using Counterfactual Textual Explanations
Currently, there is a significant amount of research being conducted in the field of artificial intelligence to improve the explainability and interpretability of deep learning models. It is found that if end-users under…
counterfactualCounterfactual ReasoningRecommendation SystemsRanking Counterfactual Explanations
AI-driven outcomes can be challenging for end-users to understand. Explanations can address two key questions: "Why this outcome?" (factual) and "Why not another?" (counterfactual). While substantial efforts have been ma…
counterfactualCounterfactual Explanation