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Related papers: Contract Design With Safety Inspections

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This paper revisits the classic instrument choice problem in a setting with consumption externalities, through the lens of robust mechanism design. A regulator can implement any incentive-compatible policy but is uncertain about how…

General Economics · Economics 2026-03-18 Zi Yang Kang

We consider a contracting problem in which a principal hires an agent to manage a risky project. When the agent chooses volatility components of the output process and the principal observes the output continuously, the principal can…

Portfolio Management · Quantitative Finance 2015-03-17 Jakša Cvitanić , Dylan Possamaï , Nizar Touzi

We consider the mechanism design problem of a principal allocating a single good to one of several agents without monetary transfers. Each agent desires the good and uses it to create value for the principal. We designate this value as the…

Theoretical Economics · Economics 2024-06-26 Halil İbrahim Bayrak , Çağıl Koçyiğit , Daniel Kuhn , Mustafa Çelebi Pınar

Combinatorial contracts are emerging as a key paradigm in algorithmic contract design, paralleling the role of combinatorial auctions in algorithmic mechanism design. In this paper we study natural combinatorial contract settings involving…

Computer Science and Game Theory · Computer Science 2024-05-15 Paul Duetting , Tomer Ezra , Michal Feldman , Thomas Kesselheim

Using a model in which agents compete to develop a potentially dangerous new technology (AI), we study how changes in the pricing of factors of production (computational resources) affect agents' strategies, particularly their spending on…

General Economics · Economics 2023-02-23 Mckay Jensen , Nicholas Emery-Xu , Robert Trager

The increasing adoption of Reinforcement Learning in safety-critical systems domains such as autonomous vehicles, health, and aviation raises the need for ensuring their safety. Existing safety mechanisms such as adversarial training,…

Machine Learning · Computer Science 2021-11-11 Paulina Stevia Nouwou Mindom , Amin Nikanjam , Foutse Khomh , John Mullins

We introduce and study the problem of designing optimal contracts under fairness constraints on the task assignments and compensations. We adopt the notion of envy-free (EF) and its relaxations, $\epsilon$-EF and envy-free up to one item…

Computer Science and Game Theory · Computer Science 2025-07-23 Matteo Castiglioni , Junjie Chen , Yingkai Li

Monitoring AIs at runtime can help us detect and stop harmful actions. In this paper, we study how to efficiently combine multiple runtime monitors into a single monitoring protocol. The protocol's objective is to maximize the probability…

Computers and Society · Computer Science 2025-10-22 Tim Tian Hua , James Baskerville , Henri Lemoine , Mia Hopman , Aryan Bhatt , Tyler Tracy

We study the combinatorial contracting problem of D\"utting et al. [FOCS '21], in which a principal seeks to incentivize an agent to take a set of costly actions. In their model, there is a binary outcome (the agent can succeed or fail),…

Computer Science and Game Theory · Computer Science 2023-09-20 Paul Dütting , Michal Feldman , Yoav Gal Tzur

We consider the problem of Adverse Selection and optimal derivative design within a Principal-Agent framework. The principal's income is exposed to non-hedgeable risk factors arising, for instance, from weather or climate phenomena. She…

Computational Engineering, Finance, and Science · Computer Science 2007-10-31 U. Horst , S. Moreno

Strategic learning studies how decision rules interact with agents who may strategically change their inputs/features to achieve better outcomes. In standard settings, models assume that the decision-maker's sole scope is to learn a…

Computer Science and Game Theory · Computer Science 2025-10-23 Valia Efthymiou , Ekaterina Fedorova , Chara Podimata

We consider a principal who wishes to screen an agent with \emph{discrete} types by offering a menu of \emph{discrete} quantities and \emph{discrete} transfers. We assume that the principal's valuation is discrete strictly concave and use a…

Theoretical Economics · Economics 2025-10-27 Alejandro Francetich , Burkhard C. Schipper

We study a repeated contracting setting in which a Principal adaptively chooses amongst $k$ Agents at each of $T$ rounds. The Agents are non-myopic, and so a mechanism for the Principal induces a $T$-round extensive form game amongst the…

Computer Science and Game Theory · Computer Science 2024-02-28 Natalie Collina , Varun Gupta , Aaron Roth

Following the recent literature on make take fees policies, we consider an exchange wishing to set a suitable contract with several market makers in order to improve trading quality on its platform. To do so, we use a principal-agent…

Trading and Market Microstructure · Quantitative Finance 2021-03-09 Bastien Baldacci , Dylan Possamaï , Mathieu Rosenbaum

A new class of multi agent single machine scheduling problems is introduced, where each job is associated with a self interested agent with a utility function decreasing in completion time. We aim to achieve a fair solution by maximizing…

Computer Science and Game Theory · Computer Science 2026-04-01 Gaia Nicosia , Andrea Pacifici , Ulrich Pferschy

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

Malicious softwares or malwares for short have become a major security threat. While originating in criminal behavior, their impact are also influenced by the decisions of legitimate end users. Getting agents in the Internet, and in…

Computer Science and Game Theory · Computer Science 2016-11-15 Marc Lelarge

We study the problem of a principal who wants to influence an agent's observable action, subject to an ex-post budget. The agent has a private type determining their cost function. This paper endogenizes the value of the resource driving…

Theoretical Economics · Economics 2024-04-25 Nicole Immorlica , Nicholas Wu , Brendan Lucier

Crowdsourcing markets have emerged as a popular platform for matching available workers with tasks to complete. The payment for a particular task is typically set by the task's requester, and may be adjusted based on the quality of the…

Data Structures and Algorithms · Computer Science 2015-09-03 Chien-Ju Ho , Aleksandrs Slivkins , Jennifer Wortman Vaughan

Principal-Agent (PA) problems describe a broad class of economic relationships characterized by misaligned incentives and asymmetric information. The Principal's problem is to find optimal incentives given the available information, e.g., a…

Multiagent Systems · Computer Science 2022-02-21 Tong Mu , Stephan Zheng , Alexander Trott