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In the principal-agent problem formulated by Myerson'82, agents have private information (type) and make private decisions (action), both of which are unobservable to the principal. Myerson pointed out an elegant linear programming solution…
This research proposes a novel auction mechanism for transactive energy exchange between buyers and sellers, modeled as agents in a microgrid. The mechanism is implemented by a separate microgrid controller (MC) agent, and requires big data…
AI agents are increasingly transacting on behalf of users -- delegating tasks, spending budgets, and negotiating with unfamiliar counterparties. Unlike human marketplaces, which operate under institutional designs refined over centuries,…
Smart recommendation algorithms have revolutionized content delivery and improved efficiency across various domains. However, concerns about user agency arise from the algorithms' inherent opacity (information asymmetry) and one-way output…
It is of high interest for a company to identify customers expected to bring the largest profit in the upcoming period. Knowing as much as possible about each customer is crucial for such predictions. However, their demographic data,…
Motivated by the prevalence of prediction problems in the economy, we study markets in which firms sell models to a consumer to help improve their prediction. Firms decide whether to enter, choose models to train on their data, and set…
Action advising is a knowledge transfer technique for reinforcement learning based on the teacher-student paradigm. An expert teacher provides advice to a student during training in order to improve the student's sample efficiency and…
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…
Exchange of services and resources in, or over, networks is attracting nowadays renewed interest. However, despite the broad applicability and the extensive study of such models, e.g., in the context of P2P networks, many fundamental…
In this article, an agent-based negotiation model for negotiation teams that negotiate a deal with an opponent is presented. Agent-based negotiation teams are groups of agents that join together as a single negotiation party because they…
We study a screening problem in which an agent privately observes a set of feasible technologies and can strategically disclose only a subset to the principal. The principal then takes an action whose payoff consequences for both players…
With the proliferation of web technologies it becomes more and more important to make the traditional negotiation pricing mechanism automated and intelligent. The behaviour of software agents which negotiate on behalf of humans is…
A competitive market is modeled as a game of incomplete information. One player observes some payoff-relevant state and can sell (possibly noisy) messages thereof to the other, whose willingness to pay is contingent on their own beliefs. We…
As AI usage becomes more prevalent in social contexts, understanding agent-user interaction is critical to designing systems that improve both individual and group outcomes. We present an online behavioral experiment (N = 243) in which…
This paper considers the problem of shaping agent utility functions in a transactive energy system to ensure the optimal energy price at a competitive equilibrium is always socially acceptable, that is, below a prescribed threshold. Agents…
Consider a principal who wants to search through a space of stochastic solutions for one maximizing their utility. If the principal cannot conduct this search on their own, they may instead delegate this problem to an agent with distinct…
Multiagent negotiation mechanisms advise original solutions to several problems for which usual problem solving methods are inappropriate. Mainly negotiation models are based on agents' interactions through messages. Agents interact in…
We investigate knowledge exchange among commercial organisations, the rationale behind it and its effects on the market. Knowledge exchange is known to be beneficial for industry, but in order to explain it, authors have used high level…
Consider an application sold on an on-line platform, with the app paying a commission fee and, henceforth, offered for sale on the platform. The ability to sell the application depends on its customer ranking. Therefore, developers may have…
We examine the trade-off between the provision of incentives to exert costly effort (ex-ante moral hazard) and the incentives needed to prevent the agent from manipulating the profit observed by the principal (ex-post moral hazard).…