Price of Fairness in Short-Term and Long-Term Algorithmic Selections

Shahin Jabbari; Chen Wang

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arXiv · 2605.06227

Price of Fairness in Short-Term and Long-Term Algorithmic Selections

Shahin Jabbari·Chen Wang

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Abstract

Algorithmic decision-making in high-stakes settings can have profound impacts on individuals and populations. While much prior work studies fairness in static settings, recent results show that enforcing static fairness constraints may exacerbate long-run disparities. Motivated by this tension, we study a stylized sequential selection problem in which a decision-maker repeatedly selects individuals, affecting both immediate utility and the population distribution over time. We introduce notions of group fairness for both the short and long term and theoretically analyze the trade-off between fairness and utility via the Price of Fairness (PoF). We characterize optimal and fair policies in the short term and show that the PoF can be large even when group distributions are nearly identical. In contrast, we show that long-term disparities can vanish under simple investment policies that achieve a low PoF. We also empirically validate these theoretical observations using both synthetic and real datasets.

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Shahin Jabbari, Chen Wang. 2026-05-07. Price of Fairness in Short-Term and Long-Term Algorithmic Selections. https://arxiv.org/abs/2605.06227

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