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The Fairness-Performance Pareto Frontier: How to Design Less Discriminatory Algorithms?
Proceedings of Fifth European Conference on Algorithmic Fairness, PMLR 350:196-200, 2026.
Abstract
In our recent publication we derive an optimality theorem for binary data-based decision systems which characterizes the Pareto-optimal systems in the performance-fairness space, for a wide range of group fairness scores and arbitrary performance utility functions[11]. The theorem gives a theoretical boundary for the Pareto frontier that cannot be exceeded by any algorithm, and proves that these solutions are deterministic group-specific threshold rules. We recapitulate the most important findings of this paper under the perspective of their legal implications. A decision system to be qualified as legally non-discriminatory needs to pass the so-called proportionality test which (among other questions) requires a proof that the goal of the decision maker could not have been achieved with less discriminatory means. Technically, this implies that the decision system is Pareto-optimal in the performance-fairness space, evaluated with a suitable fairness metric. We show that the optimality theorem of [11] helps to deal with the legal question of the proportionality test, but at the same time leads to puzzling questions with respect to the legal concepts of direct and indirect discrimination.