Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Machine Predictions and Human Decisions with Variation in Payoffs and
  Skill   Human decision-making differs due to variation in both incentives and
available information. This constitutes a substantial challenge for the
evaluation of whether and how machine learning predictions can improve decision
outcomes. We propose a framework that incorporates machine learning on
large-scale data into a choice model featuring heterogeneity in decision maker
payoff functions and predictive skill. We apply this framework to the major
health policy problem of improving the efficiency in antibiotic prescribing in
primary care, one of the leading causes of antibiotic resistance. Our analysis
reveals large variation in physicians' skill to diagnose bacterial infections
and in how physicians trade off the externality inherent in antibiotic use
against its curative benefit. Counterfactual policy simulations show that the
combination of machine learning predictions with physician diagnostic skill
results in a 25.4 percent reduction in prescribing and achieves the largest
welfare gains compared to alternative policies for both estimated physician as
well as conservative social planner preference weights on the antibiotic
resistance externality.

21
The categories of this paper are: adap-org
33
The categories of this paper are: plasm-ph
36
The categories of this paper are: cmp-lg
15
The categories of this paper are: nucl-ex
2
The categories of this paper are: math
10
The categories of this paper are: q-bio
34
The categories of this paper are: chem-ph
23
The categories of this paper are: solv-int
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The categories of this paper are: eess
9
The categories of this paper are: nlin
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The categories of this paper are: dg-ga
8
The categories of this paper are: hep-ex
22
The categories of this paper are: chao-dyn
20
The categories of this paper are: acc-phys
7
The categories of this paper are: hep-th
6
The categories of this paper are: astro-ph