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Related papers: Contracting over persistent information

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In a multi-agent system, an agent's optimal policy will typically depend on the policies chosen by others. Therefore, a key issue in multi-agent systems research is that of predicting the behaviours of others, and responding promptly to…

Multiagent Systems · Computer Science 2019-10-22 Dongge Han , Wendelin Boehmer , Michael Wooldridge , Alex Rogers

In practice, incentive providers (i.e., principals) often cannot observe the reward realizations of incentivized agents, which is in contrast to many principal-agent models that have been previously studied. This information asymmetry…

Machine Learning · Computer Science 2023-08-15 Ilgin Dogan , Zuo-Jun Max Shen , Anil Aswani

In this paper we show how the relaxation techniques can be used to establish the existence of an optimal contract in presence of information asymmetry. The method we illustrate was initially motivated by the problem of designing optimal…

Mathematical Finance · Quantitative Finance 2023-07-17 Guillermo Alonso Alvarez , Sergey Nadtochiy

How best to incentivise prompt disclosure? We study this question in a general model in which a technological breakthrough occurs at an uncertain time and is privately observed by an agent, and a principal must incentivise disclosure via…

Theoretical Economics · Economics 2025-12-09 Gregorio Curello , Ludvig Sinander

Machine learning has become increasingly popular in informing data-driven policy-making. Policies influence behavior in individuals or populations, and ideally, through observational signals, policy-makers learn which policies are…

Machine Learning · Computer Science 2026-04-28 Shiliang Zuo

A principal has $m$ identical objects to allocate among a group of $n$ agents. Objects are desirable and the principal's value of assigning an object to an agent is the agent's private information. The principal can verify up to $k$ agents,…

Theoretical Economics · Economics 2024-09-04 Albin Erlanson , Andreas Kleiner

In this paper, we study belief elicitation about an uncertain future event, where the reports will affect a principal's decision. We study two problems that can arise in this setting: (1) Agents may have an interest in the outcome of the…

Computer Science and Game Theory · Computer Science 2023-03-01 Manuel Wuthrich , Mark York , David C. Parkes

We characterize the optimal reward functions (scoring rules) that incentivize an agent to acquire information and report it truthfully to the principal. The optimal scoring rules let the agent make a simple binary bet in single-dimensional…

Computer Science and Game Theory · Computer Science 2025-10-03 Jason D. Hartline , Yingkai Li , Liren Shan , Yifan Wu

We consider a two-player dynamic information design problem between a principal and a receiver -- a game is played between the two agents on top of a Markovian system controlled by the receiver's actions, where the principal obtains and…

Computer Science and Game Theory · Computer Science 2024-03-20 Dengwang Tang , Vijay G. Subramanian

We study a decision-maker's problem of finding optimal monetary incentive schemes for retention when faced with agents whose participation decisions (stochastically) depend on the incentive they receive. Our focus is on policies constrained…

Computer Science and Game Theory · Computer Science 2024-07-31 Daniel Freund , Chamsi Hssaine

We study the problem of demand response contracts in electricity markets by quantifying the impact of considering a mean-field of consumers, whose consumption is impacted by a common noise. We formulate the problem as a Principal-Agent…

Probability · Mathematics 2020-03-25 Romuald Elie , Emma Hubert , Thibaut Mastrolia , Dylan Possamaï

This paper studies optimal contract design in private market investing, focusing on internal decision making in venture capital and private equity firms. A principal relies on an agent who privately exerts costly due diligence effort and…

Computer Science and Game Theory · Computer Science 2025-12-23 Jussi Keppo , Yingkai Li

Negotiation is a very common interaction between automated agents. Many common negotiation protocols work with cardinal utilities, even though ordinal preferences, which only rank the outcomes, are easier to elicit from humans. In this work…

Computer Science and Game Theory · Computer Science 2023-12-18 Sefi Erlich , Noam Hazon , Sarit Kraus

This work considers a novel information design problem and studies how the craft of payoff-relevant environmental signals solely can influence the behaviors of intelligent agents. The agents' strategic interactions are captured by a Markov…

Multiagent Systems · Computer Science 2021-06-15 Tao Zhang , Quanyan Zhu

We study the tradeoff between fundamental risk and time. A time-constrained agent has to solve a problem. She dynamically allocates effort between implementing a risky initial idea and exploring alternatives. Discovering an alternative…

Theoretical Economics · Economics 2023-02-21 Christoph Carnehl , Johannes Schneider

We study a ubiquitous learning challenge in online principal-agent problems during which the principal learns the agent's private information from the agent's revealed preferences in historical interactions. This paradigm includes important…

Computer Science and Game Theory · Computer Science 2024-01-01 Minbiao Han , Michael Albert , Haifeng Xu

We study an optimal investment problem under default risk where related information such as loss or recovery at default is considered as an exogenous random mark added at default time. Two types of agents who have different levels of…

Pricing of Securities · Quantitative Finance 2017-03-02 Ying Jiao , Idris Kharroubi

We study the problem of a principal who wants to influence an agent's observable action, subject to an ex-post budget. The agent has a private type determining their cost function. This paper endogenizes the value of the resource driving…

Theoretical Economics · Economics 2024-04-25 Nicole Immorlica , Nicholas Wu , Brendan Lucier

We analyze a model of selling a single object to a principal-agent pair who want to acquire the object for a firm. The principal and the agent have different assessments of the object's value to the firm. The agent is budget-constrained…

Theoretical Economics · Economics 2024-10-07 Debasis Mishra , Kolagani Paramahamsa

This paper studies how uncertainty about problem difficulty shapes problem-solving strategies. I develop a dynamic model where an agent solves a problem by brainstorming approaches of unknown quality and allocating a fixed effort budget…

Theoretical Economics · Economics 2026-04-02 Nicholas Wu