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Reward schemes may affect not only agents' effort, but also their incentives to gather information to reduce the riskiness of the productive activity. In a laboratory experiment using a novel task, we find that the relationship between…

General Economics · Economics 2024-09-11 Philip Brookins , Jennifer Brown , Dmitry Ryvkin

How do incentive levels affect strategic behaviour? We address this with an experiment that separately identifies own- and opponent-incentive effects in two dominance-solvable games that differ in strategic complexity. Higher own incentives…

Theoretical Economics · Economics 2026-03-30 Teresa Esteban-Casanelles , Duarte Gonçalves

We study how increasing competition, by making prizes more unequal, affects effort in contests. In a finite type-space environment, we characterize the equilibrium, analyze the effect of competition under linear costs, and identify…

Theoretical Economics · Economics 2025-02-13 Andrzej Baranski , Sumit Goel

Incentives are more likely to elicit desired outcomes when they are designed based on accurate models of agents' strategic behavior. A growing literature, however, suggests that people do not quite behave like standard economic agents in a…

Computer Science and Game Theory · Computer Science 2014-06-09 Arpita Ghosh , Robert Kleinberg

We consider the design of experiments to evaluate treatments that are administered by self-interested agents, each seeking to achieve the highest evaluation and win the experiment. For example, in an advertising experiment, a company wishes…

Methodology · Statistics 2015-09-18 Panos Toulis , David C. Parkes , Elery Pfeffer , James Zou

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

I study the optimal design of ratings to motivate agent investment in quality when transfers are unavailable. The principal designs a rating scheme that maps the agent's quality to a (possibly stochastic) score. The agent has private…

Theoretical Economics · Economics 2025-08-11 Peiran Xiao

Reward functions are central in specifying the task we want a reinforcement learning agent to perform. Given a task and desired optimal behavior, we study the problem of designing informative reward functions so that the designed rewards…

Machine Learning · Computer Science 2024-02-13 Rati Devidze , Parameswaran Kamalaruban , Adish Singla

We study the mechanism design problem in the setting where agents are rewarded using information only. This problem is motivated by the increasing interest in secure multiparty computation techniques. More specifically, we consider the…

Computer Science and Game Theory · Computer Science 2018-09-28 Simina Brânzei , Claudio Orlandi , Guang Yang

Tournaments are frequently used incentive mechanisms to enhance performance. In this paper, we use field data and show that skill disparities among contestants asymmetrically affect the performance of contestants. Skill disparities have…

General Economics · Economics 2024-10-29 Enzo Brox , Daniel Goller

When funding public goods, resources are often allocated via mechanisms that resemble contests, especially in the case of research grants. A common critique of these contests is that they induce ``too much'' effort from participants. This…

General Economics · Economics 2024-03-13 Kyle R. Myers

Strategic classification studies the design of a classifier robust to the manipulation of input by strategic individuals. However, the existing literature does not consider the effect of competition among individuals as induced by the…

Computer Science and Game Theory · Computer Science 2022-02-23 Lydia T. Liu , Nikhil Garg , Christian Borgs

Strategic classification studies the problem where self-interested individuals or agents manipulate their response to obtain favorable decision outcomes made by classifiers, typically turning to dishonest actions when they are less costly…

Machine Learning · Computer Science 2026-05-26 Ziyuan Huang , Lina Alkarmi , Mingyan Liu

This paper studies the optimal mechanism to motivate effort in a dynamic principal-agent model without transfers. An agent is engaged in a task with uncertain future rewards and can quit at any time. The principal knows the reward and…

Theoretical Economics · Economics 2026-01-16 Chang Liu

In science as elsewhere, attention is a limited resource and scientists compete with one another to produce the most exciting, novel and impactful results. We develop a game-theoretic model to explore how such competition influences the…

Physics and Society · Physics 2025-09-09 Kevin Gross , Carl T. Bergstrom

We study the optimal allocation of prizes in rank-order tournaments with loss averse agents. Prize sharing becomes increasingly optimal with loss aversion because more equitable prizes reduce the marginal psychological cost of anticipated…

Theoretical Economics · Economics 2024-11-05 Dmitry Ryvkin , Qin Wu

When users lack specific knowledge of various system parameters, their uncertainty may lead them to make undesirable deviations in their decision making. To alleviate this, an informed system operator may elect to signal information to…

Computer Science and Game Theory · Computer Science 2023-03-31 Bryce L. Ferguson , Philip N. Brown , Jason R. Marden

Multi-agent reinforcement learning in mixed-motive settings presents a fundamental challenge: agents must balance individual interests with collective goals, which are neither fully aligned nor strictly opposed. To address this, reward…

Multiagent Systems · Computer Science 2025-08-26 Woojun Kim , Katia Sycara

We study misspecified Bayesian learning in principal-agent relationships, where an agent is assessed by an evaluator and rewarded by the market. The agent's outcome depends on their innate ability, costly effort -- whose effectiveness is…

Theoretical Economics · Economics 2025-12-02 Federico Echenique , Anqi Li

Recent developments in sequential experimental design look to construct a policy that can efficiently navigate the design space, in a way that maximises the expected information gain. Whilst there is work on achieving tractable policies for…

Machine Learning · Computer Science 2025-08-20 Yasir Zubayr Barlas , Kizito Salako
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