Related papers: Incentives-Based Mechanism for Efficient Demand Re…
Our aim is to design mechanisms that motivate all agents to reveal their predictions truthfully and promptly. For myopic agents, proper scoring rules induce truthfulness. However, as has been described in the literature, when agents take…
Critical sectors of human society are progressing toward the adoption of powerful artificial intelligence (AI) agents, which are trained individually on behalf of self-interested principals but deployed in a shared environment. Short of…
We analyze a two-period principal-agent model in which the principal faces a budget constraint, and the agent's private costs of performing tasks across the two periods may be correlated. We examine the optimal design of the reward scheme…
We propose a simple model that describes the dynamics of efficiencies of competing agents. Agents communicate leading to increase of efficiencies of underachievers, and an efficiency of each agent can increase or decrease irrespectively of…
We study the design of effort-maximizing grading schemes between agents with private abilities. Assuming agents derive value from the information their grade reveals about their ability, we find that more informative grading schemes induce…
This paper develops incentive mechanisms for promoting eco-driving with the overarching goal of minimizing emissions in transportation networks. The system operator provides drivers with energy-efficient driving guidance throughout their…
This paper presents a capacity-constrained incentive-based demand response approach for residential smart grids. It aims to maintain electricity grid capacity limits and prevent congestion by financially incentivising end users to reduce or…
The Probabilistic Serial mechanism is well-known for its desirable fairness and efficiency properties. It is one of the most prominent protocols for the random assignment problem. However, Probabilistic Serial is not incentive-compatible,…
We study the design of optimal incentives in sequential processes. To do so, we consider a basic and fundamental model in which an agent initiates a value-creating sequential process through costly investment with random success. If…
In social decision-making among strategic agents, a universal focus lies on the balance between social and individual interests. Socially efficient mechanisms are thus desirably designed to not only maximize the social welfare but also…
Human agents are increasingly serving as data sources in the context of dynamical systems. Unlike traditional sensors, humans may manipulate or omit data for selfish reasons. Therefore, this paper studies the influence of effort-averse…
We consider schemes for obtaining truthful reports on a common but hidden signal from large groups of rational, self-interested agents. One example are online feedback mechanisms, where users provide observations about the quality of a…
We consider the problem of devising incentive strategies for viral marketing of a product. In particular, we assume that the seller can influence penetration of the product by offering two incentive programs: a) direct incentives to…
We introduce a methodology for efficiently computing a lower bound to empowerment, allowing it to be used as an unsupervised cost function for policy learning in real-time control. Empowerment, being the channel capacity between actions and…
We consider an outsourcing problem where a software agent procures multiple services from providers with uncertain reliabilities to complete a computational task before a strict deadline. The service consumer requires a procurement strategy…
The utility company has many motivations for modifying energy consumption patterns of consumers such as revenue decoupling and demand response programs. We model the utility company--consumer interaction as a principal--agent problem. We…
Agents are systems that optimize an objective function in an environment. Together, the goal and the environment induce secondary objectives, incentives. Modeling the agent-environment interaction using causal influence diagrams, we can…
We study the design of efficient mechanisms under asymmetric awareness and information. Unawareness refers to the lack of conception rather than the lack of information. Assuming quasi-linear utilities and private values, we show that we…
We propose an incentive scheme based on intervention to sustain cooperation among self-interested users. In the proposed scheme, an intervention device collects imperfect signals about the actions of the users for a test period, and then…
We investigate the optimal regulation of energy production in alignment with the long-term goals of the Paris Climate Agreement. We analyze the optimal regulatory incentives to foster the development of non-emissive electricity generation…