A structural model to explain unfairness

The aim of this paper is to propose a structural model that can explain the reasoning underlying automated decisions and, in particular, their unfairness. Moving beyond black-box approaches, our model provides transparency and interpretability, enabling a deep understanding of decision-making processes. Specifically, we build a diffusion process to explain the inequality and unfairness in credit lending. We then compare the Gini index before and after the application of the model. A substantial reduction in the Gini index indicates that the diffusion process can explain unfairness.