Given the ubiquity of AI-based decisions that affect individuals' lives, providing transparent explanations about algorithms is ethically sound and often legally mandatory. How do individuals strategically adapt following explanations? What are the consequences of adaptation for algorithmic accuracy? We simulate the interplay between explanations shared by an Institution (e.g. a bank) and the dynamics of strategic adaptation by Individuals reacting to such feedback. Our model identifies key aspects related to strategic adaptation and the challenges that an institution could face as it attempts to provide explanations. Resorting to an agent-based approach, our model scrutinizes: i) the impact of transparency in explanations, ii) the interaction between faking behavior and detection capacity and iii) the role of behavior imitation. We find that the risks of transparent explanations are alleviated if effective methods to detect faking behaviors are in place. Furthermore, we observe that behavioral imitation - as often happens across societies - can alleviate malicious adaptation and contribute to accuracy, even after transparent explanations.

This paper presents an intuitive explanation about why and how Rawlsian Theory of Justice (Rawls in A theory of justice, Harvard University Press, Harvard, 1971) provides the foundations to a solution for algorithmic bias. The contribution of the paper is to discuss and show why Rawlsian ideas in their original form (e.g. the veil of ignorance, original position, and allowing inequalities that serve the worst-off) are relevant to operationalize fairness for algorithmic decision making. The paper also explains how this leads to a specific MinMaxfairness solution, which addresses the basic challenges of algorithmic justice. We combine substantive elements of Rawlsian perspective with an intuitive explanation in order to provide accessible and practical insights. The goal is to propose and motivate why and how the MinMaxfairness solution derived from Rawlsian principles overcomes some of the current challenges for algorithmic bias and highlight the benefits provided when compared to other approaches. The paper presents and discusses the solution by building a bridge between the qualitative theoretical aspects and the quantitative technical approach.