Hierarchical labeling. (errors in some taxonomy.)

The pets idea had dog and cat breeds all mixed up, and we identified the breed.
what if we cared about the taxonomy as well. i.e. identifying it as a dog rather than a cat would be partially correct and get you some points.

how can we explicitly change the error cost for “near” labels?
how about generalizing ?
i.e. go one level up in the taxonomy

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