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Related papers: Combinatorial Contracts

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We study the role of regulatory inspections in a contract design problem in which a principal interacts separately with multiple agents. Each agent's hidden action includes a dimension that determines whether they undertake an extra costly…

Computer Science and Game Theory · Computer Science 2023-11-07 Alireza Fallah , Michael I. Jordan

We study the classic principal-agent model when the signal observed by the principal is chosen by the agent. We fully characterize the optimal information structure from an agent's perspective in a general moral hazard setting with limited…

Theoretical Economics · Economics 2023-07-25 Majid Mahzoon , Ali Shourideh , Ariel Zetlin-Jones

We study a robust contract design problem with deferred inspection, in which a principal allocates a scarce resource to an agent, observes the agent's realized outcome ex post at negligible cost, and conditions transfers on this information…

Theoretical Economics · Economics 2026-01-12 Halil I. Bayrak , Martin Bichler

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

We study a Bayesian contract design problem in which a principal interacts with an unknown agent. We consider the single-parameter uncertainty model introduced by Alon et al. [2021], in which the agent's type is described by a single…

Computer Science and Game Theory · Computer Science 2025-02-21 Martino Bernasconi , Matteo Castiglioni , Andrea Celli

We study a continuous time contracting model in which a principal hires a risk averse agent to manage a project over a finite horizon and provides sequential payments whose timing is endogenously determined. The resulting nonzero-sum…

Theoretical Economics · Economics 2025-12-01 Guillermo Alonso Alvarez , Ibrahim Ekren , Liwei Huang

The increasing deployment of AI is shaping the future landscape of the internet, which is set to become an integrated ecosystem of AI agents. Orchestrating the interaction among AI agents necessitates decentralized, self-sustaining…

Computer Science and Game Theory · Computer Science 2024-10-08 Dima Ivanov , Paul Dütting , Inbal Talgam-Cohen , Tonghan Wang , David C. Parkes

Linear contracts are ubiquitous in practice, yet optimal contract theory often prescribes complex, nonlinear structures. We provide a distributional robustness justification for linear contracts. We study a principal-agent problem where the…

Computer Science and Game Theory · Computer Science 2026-04-28 Shiliang Zuo

This paper proposes a method to design an optimal dynamic contract between a principal and an agent, who has the authority to control both the principal's revenue and an engineered system. The key characteristic of our problem setting is…

Optimization and Control · Mathematics 2014-03-24 Insoon Yang , Duncan S. Callaway , Claire J. Tomlin

We study the problem of agent-based negotiation in combinatorial domains. It is difficult to reach optimal agreements in bilateral or multi-lateral negotiations when the agents' preferences for the possible alternatives are not common…

Artificial Intelligence · Computer Science 2012-02-20 Minyi Li , Quoc Bao Vo , Ryszard Kowalczyk

We propose to study electricity capacity remuneration mechanism design through a Principal-Agent approach. The Principal represents the aggregation of electricity consumers (or a representative entity), subject to the physical risk of…

General Economics · Economics 2020-09-02 Clémence Alasseur , Heythem Farhat , Marcelo Saguan

In many multiagent domains a set of agents exert effort towards a joint outcome, yet the individual effort levels cannot be easily observed. A typical example for such a scenario is routing in communication networks, where the sender can…

Computer Science and Game Theory · Computer Science 2014-01-17 Moshe Babaioff , Michal Feldman , Noam Nisan

We analyze conditional optimization problems arising in discrete time Principal-Agent problems of delegated portfolio optimization with linear contracts. Applying tools from Conditional Analysis we show that some results known in the…

Mathematical Finance · Quantitative Finance 2016-06-15 Julio Backhoff , Ulrich Horst

In a framework close to the one developed by Holmstr\"om and Milgrom [44], we study the optimal contracting scheme between a Principal and several Agents. Each hired Agent is in charge of one project, and can make efforts towards managing…

Economics · Quantitative Finance 2016-05-27 Romuald Elie , Dylan Possamaï

A principal uses payments conditioned on stochastic outcomes of a team project to elicit costly effort from the team members. We develop a multi-agent generalization of a classic first-order approach to contract optimization by leveraging…

Theoretical Economics · Economics 2026-03-13 Krishna Dasaratha , Benjamin Golub , Anant Shah

We propose a distributionally robust principal agent formulation, which generalizes some common variants of worst-case and Bayesian principal agent problems. We construct a theoretical framework to certify whether any surjective contract…

Theoretical Economics · Economics 2024-01-17 Peter Zhang

We initiate the study of online contracts, which integrate the game-theoretic considerations of economic contract theory, with the algorithmic and informational challenges of online algorithm design. Our starting point is the classic online…

Computer Science and Game Theory · Computer Science 2026-02-10 Elad Lavi , Hadas Shachnai , Inbal Talgam-Cohen

In applications such as participatory sensing and crowd sensing, self-interested agents exert costly effort towards achieving an objective for the system operator. We study such a setup where a principal incentivizes multiple agents of…

Signal Processing · Electrical Eng. & Systems 2022-05-11 Nayara Aguiar , Parv Venkitasubramaniam , Vijay Gupta

We consider a hidden-action principal-agent model, in which actions require different amounts of effort, and the agent privately knows his ability that determines his cost of effort. We show that linear contracts admit approximation…

Computer Science and Game Theory · Computer Science 2025-03-05 Tal Alon , Paul Dütting , Yingkai Li , Inbal Talgam-Cohen

Algorithmic contract design studies scenarios where a principal incentivizes an agent to exert effort on her behalf. In this work, we focus on settings where the agent's type is drawn from an unknown distribution, and formalize an offline…

Computer Science and Game Theory · Computer Science 2025-01-27 Paul Duetting , Michal Feldman , Tomasz Ponitka , Ermis Soumalias