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We consider the problem of dynamic pricing with limited supply. A seller has $k$ identical items for sale and is facing $n$ potential buyers ("agents") that are arriving sequentially. Each agent is interested in buying one item. Each…

Computer Science and Game Theory · Computer Science 2013-11-27 Moshe Babaioff , Shaddin Dughmi , Robert Kleinberg , Aleksandrs Slivkins

We initiate the study of computing (near-)optimal contracts in succinctly representable principal-agent settings. Here optimality means maximizing the principal's expected payoff over all incentive-compatible contracts---known in economics…

Data Structures and Algorithms · Computer Science 2020-02-28 Paul Duetting , Tim Roughgarden , Inbal Talgam-Cohen

In classic principal-agent problems such as Stackelberg games, contract design, and Bayesian persuasion, the agent best responds to the principal's committed strategy. We study repeated generalized principal-agent problems under the…

Computer Science and Game Theory · Computer Science 2025-10-22 Tao Lin , Yiling Chen

The agency problem emerges in today's large scale machine learning tasks, where the learners are unable to direct content creation or enforce data collection. In this work, we propose a theoretical framework for aligning economic interests…

Machine Learning · Computer Science 2024-07-03 Jibang Wu , Siyu Chen , Mengdi Wang , Huazheng Wang , Haifeng Xu

We study a bilevel \emph{max-max} optimization framework for principal-agent contract design, in which a principal chooses incentives to maximize utility while anticipating the agent's best response. This problem, central to moral hazard…

Machine Learning · Computer Science 2025-10-27 Tomer Galanti , Aarya Bookseller , Korok Ray

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 infinite horizon dynamic programming problems, where the control at each stage consists of several distinct decisions, each one made by one of several agents. In an earlier work we introduced a policy iteration algorithm, where…

Optimization and Control · Mathematics 2020-05-05 Dimitri Bertsekas

A contract is an economic tool used by a principal to incentivize one or more agents to exert effort on her behalf, by defining payments based on observable performance measures. A key challenge addressed by contracts -- known in economics…

Computer Science and Game Theory · Computer Science 2024-12-24 Paul Duetting , Michal Feldman , Inbal Talgam-Cohen

We introduce a class of robust control problems formulated in min-max form, in which the principal agent is viewed as a central planner facing Nature. The agent's cost is a nonlinear function of all its possible realizations, encompassing…

Optimization and Control · Mathematics 2026-04-24 François Delarue , Pierre Lavigne

We analyze the optimal delegation problem between a principal and an agent, assuming that the latter has state-independent preferences. We demonstrate that if the principal is more risk-averse than the agent toward non-status quo options,…

Theoretical Economics · Economics 2024-09-19 Xiaoxiao Hu , Haoran Lei

Opinion dynamics is nowadays a very common field of research. In this article we formulate and then study a novel, namely strategic perspective on such dynamics: There are the usual normal agents that update their opinions, for instance…

Optimization and Control · Mathematics 2015-03-09 Rainer Hegselmann , Stefan König , Sascha Kurz , Christoph Niemann , Jörg Rambau

In the combinatorial-action contract model (D\"utting et al., FOCS'21) a principal delegates the execution of a complex project to an agent, who can choose any subset from a given set of actions. Each set of actions incurs a cost to the…

Computer Science and Game Theory · Computer Science 2025-11-27 Paul Dütting , Michal Feldman , Yoav Gal-Tzur , Aviad Rubinstein

Consider a multi-agent systems setup in which a principal (a supervisor agent) assigns subtasks to specialized agents and aggregates their responses into a single system-level output. A core property of such systems is information…

Multiagent Systems · Computer Science 2026-02-02 Paulius Rauba , Simonas Cepenas , Mihaela van der Schaar

We study a Bayesian persuasion problem with externalities. In this model, a principal sends signals to inform multiple agents about the state of the world. Simultaneously, due to the existence of externalities in the agents' utilities, the…

Artificial Intelligence · Computer Science 2024-12-18 Jonathan Shaki , Jiarui Gan , Sarit Kraus

We consider discrete-time infinite horizon deterministic optimal control problems with nonnegative cost per stage, and a destination that is cost-free and absorbing. The classical linear-quadratic regulator problem is a special case. Our…

Optimization and Control · Mathematics 2017-12-20 Dimitri P. Bertsekas

This article studies the problem of evaluating the information that a Principal lacks when establishing an incentive contract with an Agent whose effort is not observable. The Principal ("she") pays a continuous rent to the Agent ("he"),…

Optimization and Control · Mathematics 2023-04-10 Ishak Hajjej , Caroline Hillairet , Mohamed Mnif

When developing reinforcement learning agents, the standard approach is to train an agent to converge to a fixed policy that is as close to optimal as possible for a single fixed reward function. If different agent behaviour is required in…

Multiagent Systems · Computer Science 2021-01-29 David O'Callaghan , Patrick Mannion

The problem of computing near-optimal contracts in combinatorial settings has recently attracted significant interest in the computer science community. Previous work has provided a rich body of structural and algorithmic insights into this…

Computer Science and Game Theory · Computer Science 2025-06-26 Michal Feldman , Yoav Gal-Tzur , Tomasz Ponitka , Maya Schlesinger

We consider a dynamic pricing problem under unknown demand models. In this problem a seller offers prices to a stream of customers and observes either success or failure in each sale attempt. The underlying demand model is unknown to the…

Machine Learning · Computer Science 2012-10-30 Pouya Tehrani , Yixuan Zhai , Qing Zhao

Recent developments in digital platforms have highlighted the prevalence of open systems, where agents can arrive and depart over time. While bandit learning in open systems has recently received initial attention, existing work imposes…

Machine Learning · Computer Science 2026-05-08 Mengfan Xu