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Basic Net Scoring Methods: The Uplift Approach

In: Targeting Uplift

Author

Listed:
  • René Michel

    (Deutsche Bank AG)

  • Igor Schnakenburg

    (DeTeCon International GmbH)

  • Tobias von Martens

    (Deutsche Bank AG)

Abstract

Compared to the classical scoring approach, the difficulty with net scoring is that the target variable, i.e. the uplift, is not defined for an individual observation. Rather, the impact of a treatment is measured by a comparison of structurally identical groups of observations which have (target group) or have not (control group) received the treatment. The underlying problem is that an observation cannot be treated and not treated at the same time. Due to this interaction of the response and the treatment variable, gross scoring methods are not directly applicable, yet they present the basis from which to move on. In this chapter, several statistical methods for net scoring are presented. Firstly, a general and formal description of the net scoring problem is provided. Then, a wide variety of statistical methods for uplift modeling are presented and their respective advantages and disadvantages are described. The two final sections deal with appropriate methods for responses or treatments that are not binary, contrary to what is assumed for most parts of the book.

Suggested Citation

  • René Michel & Igor Schnakenburg & Tobias von Martens, 2019. "Basic Net Scoring Methods: The Uplift Approach," Springer Books, in: Targeting Uplift, chapter 0, pages 45-99, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-22625-1_3
    DOI: 10.1007/978-3-030-22625-1_3
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