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We focus on how individual behavior that complies with social norms interferes with performance-based incentive mechanisms in organizations with multiple distributed decision-making agents. We model social norms to emerge from interactions…

General Economics · Economics 2021-02-25 Ravshanbek Khodzhimatov , Stephan Leitner , Friederike Wall

We study allocation problems without monetary transfers where agents have correlated types, i.e., hold private information about one another. Such peer information is relevant in various settings, including science funding, allocation of…

Theoretical Economics · Economics 2025-03-21 Axel Niemeyer , Justus Preusser

We consider a principal agent project selection problem with asymmetric information. There are $N$ projects and the principal must select exactly one of them. Each project provides some profit to the principal and some payoff to the agent…

Theoretical Economics · Economics 2025-04-15 Sumit Goel , Wade Hann-Caruthers

Employers are concerned not only with a prospective worker's ability, but also their propensity to avoid shirking. This paper proposes a new experimental framework to study how Principals trade-off measures of ability and prosocial behavior…

General Economics · Economics 2025-11-03 Andrew Leal

We study how to optimally design selection mechanisms, accounting for agents' investment incentives. A principal wishes to allocate a resource of homogeneous quality to a heterogeneous population of agents. The principal commits to a…

Theoretical Economics · Economics 2025-11-11 Victor Augias , Eduardo Perez-Richet

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

We consider a dynamic moral hazard problem between a principal and an agent, where the sole instrument the principal has to incentivize the agent is the disclosure of information. The principal aims at maximizing the (discounted) number of…

Theoretical Economics · Economics 2021-03-09 Wei Zhao , Claudio Mezzetti , Ludovic Renou , Tristan Tomala

Modern recommendation systems rely on the wisdom of the crowd to learn the optimal course of action. This induces an inherent mis-alignment of incentives between the system's objective to learn (explore) and the individual users' objective…

Computer Science and Game Theory · Computer Science 2018-07-06 Gal Bahar , Rann Smorodinsky , Moshe Tennenholtz

A principal must decide between two options. Which one she prefers depends on the private information of two agents. One agent always prefers the first option; the other always prefers the second. Transfers are infeasible. One application…

Theoretical Economics · Economics 2022-05-24 Deniz Kattwinkel , Axel Niemeyer , Justus Preusser , Alexander Winter

How to optimally persuade an agent who has a private type? When elicitation is feasible, this amounts to a fairly standard principal-agent-style mechanism design problem, where the persuader employs a mechanism to first elicit the agent's…

Computer Science and Game Theory · Computer Science 2024-11-01 Jiarui Gan , Abheek Ghosh , Nicholas Teh

We study the problem of designing an optimal sequence of incentives that a principal should offer to an agent so that the agent's optimal behavior under the incentives realizes the principal's objective expressed as a temporal logic…

Optimization and Control · Mathematics 2019-03-20 Yagiz Savas , Vijay Gupta , Melkior Ornik , Lillian J. Ratliff , Ufuk Topcu

We study the incentivized information acquisition problem, where a principal hires an agent to gather information on her behalf. Such a problem is modeled as a Stackelberg game between the principal and the agent, where the principal…

Machine Learning · Computer Science 2023-08-08 Siyu Chen , Jibang Wu , Yifan Wu , Zhuoran Yang

Decision-makers in high-stakes selection processes often face a fundamental choice: whether to make decisions themselves or to delegate authority to another entity whose incentives may only be partially aligned with their own. Such…

Computers and Society · Computer Science 2026-01-16 Benjamin Fish , Diptangshu Sen , Juba Ziani

We study the problem of agent selection in causal strategic learning under multiple decision makers and address two key challenges that come with it. Firstly, while much of prior work focuses on studying a fixed pool of agents that remains…

Artificial Intelligence · Computer Science 2024-02-06 Kiet Q. H. Vo , Muneeb Aadil , Siu Lun Chau , Krikamol Muandet

In this paper, we consider a general distributed system with multiple agents who select and then implement actions in the system. The system has an operator with a centralized objective. The agents, on the other hand, are selfinterested and…

Computer Science and Game Theory · Computer Science 2020-01-15 Donya Ghavidel , Pratyush Chakraborty , Enrique Baeyens , Vijay Gupta , Pramod P. Khargonekar

We introduce and study a computational version of the principal-agent problem -- a classic problem in Economics that arises when a principal desires to contract an agent to carry out some task, but has incomplete information about the agent…

Computer Science and Game Theory · Computer Science 2023-05-18 David Hyland , Julian Gutierrez , Michael Wooldridge

Algorithms are often used to produce decision-making rules that classify or evaluate individuals. When these individuals have incentives to be classified a certain way, they may behave strategically to influence their outcomes. We develop a…

Machine Learning · Computer Science 2019-08-02 Jon Kleinberg , Manish Raghavan

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 study a model of delegation in which a principal takes a multidimensional action and an agent has private information about a multidimensional state of the world. The principal can design any direct mechanism, including stochastic ones.…

Theoretical Economics · Economics 2022-08-26 Andreas Kleiner

The application of incentives, such as reward and punishment, is a frequently applied way for promoting cooperation among interacting individuals in structured populations. However, how to properly use the incentives is still a challenging…

Computer Science and Game Theory · Computer Science 2024-04-24 Shengxian Wang , Xiaojie Chen , Zhilong Xiao , Attila Szolnoki , Vítor V. Vasconcelos