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Auditing and Fixing Economic Validity in Tabular Foundation Models for Discrete Choice

Author

Listed:
  • Yingshuo Wang
  • Xian Sun
  • Yanhang Li
  • Zhichao Fan
  • Zexin Zhuang

Abstract

Tabular foundation models achieve strong accuracy on choice prediction tasks, but their predictions often violate the economic logic those tasks require: raising a price sometimes increases predicted demand, and implied willingness-to-pay estimates are frequently negative or implausible. We propose a two-stage adapter that embeds foundation model predictions within a utility-maximization framework. In the first stage, we estimate a standard choice model whose parameters are constrained to obey economic theory. In the second stage, we freeze those parameters and train a correction term that incorporates the foundation model's predictions as additional information. The result is a model that inherits the foundation model's accuracy gains while guaranteeing monotonic price-demand relationships under policy perturbation and producing analytically computable trade-off measures. On two transportation datasets, the adapter recovers up to 13 percentage points of accuracy over a standard logit model while maintaining perfect economic consistency, something neither the raw foundation models nor conventional distillation achieve.

Suggested Citation

  • Yingshuo Wang & Xian Sun & Yanhang Li & Zhichao Fan & Zexin Zhuang, 2026. "Auditing and Fixing Economic Validity in Tabular Foundation Models for Discrete Choice," Papers 2605.26559, arXiv.org.
  • Handle: RePEc:arx:papers:2605.26559
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    File URL: http://arxiv.org/pdf/2605.26559
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