English
Related papers

Related papers: Risk-Limiting Dynamic Contracts for Direct Load Co…

200 papers

Many real-life contractual relations differ completely from the clean, static model at the heart of principal-agent theory. Typically, they involve repeated strategic interactions of the principal and agent, taking place under uncertainty…

We study a dynamic contracting problem with multiple agents and limited commitment. A principal seeks to screen efficient agents using one-period contracts, but is tempted to revise contract terms upon knowing an agent's type. Alterations…

Theoretical Economics · Economics 2025-03-24 Mehmet Ekmekci , Lucas Maestri , Dong Wei

Contract scheduling is a widely studied framework for designing real-time systems with interruptible capabilities. Previous work has showed that a prediction on the interruption time can help improve the performance of contract-based…

Data Structures and Algorithms · Computer Science 2024-04-22 Spyros Angelopoulos , Marcin Bienkowski , Christoph Dürr , Bertrand Simon

This paper studies the behavior of a strategic aggregator offering regulation capacity on behalf of a group of distributed energy resources (DERs, e.g. plug-in electric vehicles) in a power market. Our objective is to maximize the…

Optimization and Control · Mathematics 2017-08-18 Hongcai Zhang , Zechun Hu , Eric Munsing , Scott J. Moura , Yonghua Song

We establish a collection of closed-loop guarantees and propose a scalable optimization algorithm for distributionally robust model predictive control (DRMPC) applied to linear systems, convex constraints, and quadratic costs. Via standard…

Optimization and Control · Mathematics 2024-11-13 Robert D. McAllister , Peyman Mohajerin Esfahani

We characterize the value of swing contracts in continuous time as the unique viscosity solution of a Hamilton-Jacobi-Bellman equation with suitable boundary conditions. The case of contracts with penalties is straightforward, and in that…

Optimization and Control · Mathematics 2013-07-05 M. Basei , A. Cesaroni , T. Vargiolu

We study principal-agent problems in which a principal commits to an outcome-dependent payment scheme -- called contract -- in order to induce an agent to take a costly, unobservable action leading to favorable outcomes. We consider a…

Computer Science and Game Theory · Computer Science 2024-06-10 Francesco Bacchiocchi , Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

Congestion game is a widely used model for modern networked applications. A central issue in such applications is that the selfish behavior of the participants may result in resource overloading and negative externalities for the system…

Systems and Control · Electrical Eng. & Systems 2020-02-17 Ezra Tampubolon , Haris Ceribasic , Holger Boche

This paper is concerned with the relationship between maximum principle and dynamic programming principle for risk-sensitive stochastic optimal control problems. Under the smooth assumption of the value function, relations among the adjoint…

Optimization and Control · Mathematics 2025-07-10 Huanqing Dong , Jingtao Shi

A principal contracts with an agent who sequentially searches over projects to generate a prize. The principal initially knows only one of the agent's available projects and evaluates a contract by its worst-case performance. We…

Theoretical Economics · Economics 2025-09-17 Théo Durandard , Udayan Vaidya , Boli Xu

This work presents Drake, a dynamic executive for temporal plans with choice. Dynamic plan execution strategies allow an autonomous agent to react quickly to unfolding events, improving the robustness of the agent. Prior work developed…

Artificial Intelligence · Computer Science 2014-01-21 Patrick Raymond Conrad , Brian Williams

We study a natural combinatorial single-principal multi-agent contract design problem, in which a principal motivates a team of agents to exert effort toward a given task. At the heart of our model is a reward function, which maps the agent…

Computer Science and Game Theory · Computer Science 2026-03-04 Paul Duetting , Tomer Ezra , Michal Feldman , Thomas Kesselheim

We introduce contracts for linear dynamical systems with inputs and outputs. Contracts are used to express formal specifications on the dynamic behaviour of such systems through two aspects: assumptions and guarantees. The assumptions are a…

Dynamical Systems · Mathematics 2021-03-24 B. M. Shali , A. J. van der Schaft , B. Besselink

We propose a data-driven control method for systems with aleatoric uncertainty, for example, robot fleets with variations between agents. Our method leverages shared trajectory data to increase the robustness of the designed controller and…

Robotics · Computer Science 2024-03-25 Alexander von Rohr , Dmitrii Likhachev , Sebastian Trimpe

This paper introduces a novel methodology for the pricing and management of share buyback contracts, overcoming the limitations of traditional optimal control methods, which frequently encounter difficulties with high-dimensional state…

Pricing of Securities · Quantitative Finance 2024-07-15 Bastien Baldacci , Philippe Bergault , Olivier Guéant

Dynamic treatment regimens (DTRs) aim at tailoring individualized sequential treatment rules that maximize cumulative beneficial outcomes by accommodating patients' heterogeneity in decision-making. For many chronic diseases including type…

Methodology · Statistics 2024-04-23 Mochuan Liu , Yuanjia Wang , Haoda Fu , Donglin Zeng

Can a principal still offer optimal dynamic contracts that are linear in end-of-period outcomes when the agent controls a process that exhibits memory? We provide a positive answer by considering a general Gaussian setting where the output…

Optimization and Control · Mathematics 2022-09-23 Eduardo Abi Jaber , Stéphane Villeneuve

The increasing penetration of renewable energy poses significant challenges to power grid reliability. There have been increasing interests in utilizing financial tools, such as insurance, to help end-users hedge the potential risk of lost…

Systems and Control · Electrical Eng. & Systems 2022-09-22 Dongwei Zhao , Hao Wang , Jianwei Huang , Xiaojun Lin

We develop an approach for solving time-consistent risk-sensitive stochastic optimization problems using model-free reinforcement learning (RL). Specifically, we assume agents assess the risk of a sequence of random variables using dynamic…

Machine Learning · Computer Science 2022-12-01 Anthony Coache , Sebastian Jaimungal

This paper studies optimal consensus tracking problem of heterogeneous linear multi-agent systems. By introducing tracking error dynamics, the optimal tracking problem is reformulated as finding a Nash-equilibrium solution of a multi-player…

Optimization and Control · Mathematics 2019-05-21 Jilie Zhang , Zhanshan Wang , Hongwei Zhang