Related papers: Artificial Intelligence and Dual Contract

The staggering feats of AI systems have brought to attention the topic of AI Alignment: aligning a "superintelligent" AI agent's actions with humanity's interests. Many existing frameworks/algorithms in alignment study the problem on a…

We study optimal contract design for large populations of heterogeneous agents whose actions generate network spillovers represented by an interaction function. In a linear-quadratic framework, we solve the finite-agent problem and its…

Artificial intelligence algorithms are increasingly used by firms to set prices. Previous research shows that they can exhibit collusive behaviour, but how quickly they can do so has so far remained an open question. I show that a modern…

We explore the idea of aligning an AI assistant by inverting a model of users' (unknown) preferences from observed interactions. To validate our proposal, we run proof-of-concept simulations in the economic ultimatum game, formalizing user…

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…

The value alignment problem for artificial intelligence (AI) is often framed as a purely technical or normative challenge, sometimes focused on hypothetical future systems. I argue that the problem is better understood as a structural…

As artificial intelligence (AI) agents are deployed across economic domains, understanding their strategic behavior and market-level impact becomes critical. This paper puts forward a groundbreaking new framework that is the first to…

AI systems will soon have to navigate human environments and make decisions that affect people and other AI agents whose goals and values diverge. Contractualist alignment proposes grounding those decisions in agreements that diverse…

With artificial intelligence systems becoming ubiquitous in our society, its designers will soon have to start to consider its social dimension, as many of these systems will have to interact among them to work efficiently. With this in…

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…

This paper studies contracting in the presence of externalities with a non-contractible outsider. Multiple equilibria arise from strategic symmetry between the insider agent and the outsider. To address strategic uncertainty, the principal…

The rise of algorithmic pricing in online retail platforms has attracted significant interest in how autonomous software agents interact under competition. This article explores the potential emergence of algorithmic collusion -…

We consider the robust contract design problem when the principal only has limited information about the actions the agent can take. The principal evaluates a contract according to its worst-case performance caused by the uncertain action…

In principal-agent models, a principal offers a contract to an agent to perform a certain task. The agent exerts a level of effort that maximizes her utility. The principal is oblivious to the agent's chosen level of effort, and conditions…

We study Bayesian automated mechanism design in unstructured dynamic environments, where a principal repeatedly interacts with an agent, and takes actions based on the strategic agent's report of the current state of the world. Both the…

This paper investigates the dynamics of noncooperative interactions between artificial intelligence agents and human decision-makers in strategic environments. In particular, motivated by extensive literature in behavioral Economics, human…

In the classical principal-agent problem, a principal must design a contract to incentivize an agent to perform an action on behalf of the principal. We study the classical principal-agent problem in a setting where the agent can be of one…

When online sellers use AI learning algorithms to automatically compete on e-commerce platforms, there is concern that they will learn to coordinate on higher than competitive prices. However, this concern was primarily raised in…

AI agents -- systems that combine foundation models with reasoning, planning, memory, and tool use -- are rapidly becoming a practical interface between natural-language intent and real-world computation. This survey synthesizes the…

Many real-life contractual relations differ completely from the clean, static model at the heart of principal-agent theory. Typically, they involve repeated strategic interactions of the principal and agent, taking place under uncertainty…