Simulating Eutopia: Long-term Fairness with Outcomes, Performativity, and Dynamics

As AI-driven Decision Makers (ADMs) influence our socioeconomic reality, their roles in both enhancing efficiency and amplifying the social biases have drawn significant attention. In this paper, we revisit the nuances of *long-term fairness* achievable by an ADM– specifically, through the lens of a loan approver inducing a population-level wealth dynamics. The literature generally (a) considers passive environments, i.e. the decisions of an ADM does not change the population's behaviour, and (b) measures bias in terms of disparity in the instantaneous decisions rather than downstream equity. Modern ADMs challenge both the notions. To address these caveats, we first formalise the wealth dynamics induced by a loan approving ADM interacting with a multi-demographic population as a Performative Markov Decision Process. Then, we mitigate the absence of such a performative test-bed by developing **Eutopia**: a lending-process simulator enabled with a novel performative data generator to learn long-term fair strategies. With **Eutopia**, we test reinforcement learning algorithms with different fairness-aware utilities dependent on approval decisions and downstream wealth. Results show that performative dynamics-aware learning with fairness-aware utility that incorporates the downstream outcomes induce better long-term equity and inclusivity.