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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 study a Bayesian contract design problem in which a principal interacts with an unknown agent. We consider the single-parameter uncertainty model introduced by Alon et al. [2021], in which the agent's type is described by a single…

Computer Science and Game Theory · Computer Science 2025-02-21 Martino Bernasconi , Matteo Castiglioni , Andrea Celli

A large fraction of total healthcare expenditure occurs due to end-of-life (EOL) care, which means it is important to study the problem of more carefully incentivizing necessary versus unnecessary EOL care because this has the potential to…

Optimization and Control · Mathematics 2024-03-25 Muyan Jiang , Ying Chen , Xin Chen , Javad Lavaei , Anil Aswani

A principal selects a team of agents for collaborating on a joint project. The principal aims to design a revenue-optimal contract that incentivize the team of agents to exert costly effort while satisfying fairness constraints. We show…

Computer Science and Game Theory · Computer Science 2025-12-23 Matteo Castiglioni , Junjie Chen , Yingkai Li

We study the hidden-action principal-agent problem in an online setting. In each round, the principal posts a contract that specifies the payment to the agent based on each outcome. The agent then makes a strategic choice of action that…

Computer Science and Game Theory · Computer Science 2023-05-23 Banghua Zhu , Stephen Bates , Zhuoran Yang , Yixin Wang , Jiantao Jiao , Michael I. Jordan

In applications such as participatory sensing and crowd sensing, self-interested agents exert costly effort towards achieving an objective for the system operator. We study such a setup where a principal incentivizes multiple agents of…

Signal Processing · Electrical Eng. & Systems 2022-05-11 Nayara Aguiar , Parv Venkitasubramaniam , Vijay Gupta

In dynamic mechanism design literature, one critical aspect has been typically ignored-the agents' periodic participation, which they can adapt and plan strategically. We propose a framework for dynamic principal-multiagent problems,…

Computer Science and Game Theory · Computer Science 2023-06-16 Tao Zhang , Quanyan Zhu

Fairness is desirable yet challenging to achieve within multi-agent systems, especially when agents differ in latent traits that affect their abilities. This hidden heterogeneity often leads to unequal distributions of wealth, even when…

Computer Science and Game Theory · Computer Science 2025-06-23 Jakub Tłuczek , Victor Villin , Christos Dimitrakakis

We study multi-agent contract design with combinatorial actions, under budget constraints, and for a broad class of objective functions, including profit (principal's utility), reward, and welfare. Our first result is a strong…

Computer Science and Game Theory · Computer Science 2025-11-26 Michal Feldman , Yoav Gal-Tzur , Tomasz Ponitka , Maya Schlesinger

We study a generic principal-agent problem in continuous time on a finite time horizon. We introduce a framework in which the agent is allowed to employ measure-valued controls and characterise the continuation utility as a solution to a…

Probability · Mathematics 2025-12-01 Daniel Kršek , Dylan Possamaï

The widespread deployment of Machine Learning systems everywhere raises challenges, such as dealing with interactions or competition between multiple learners. In that goal, we study multi-agent sequential decision-making by considering…

Computer Science and Game Theory · Computer Science 2025-10-28 Antoine Scheid , Etienne Boursier , Alain Durmus , Eric Moulines , Michael I. Jordan

A principal provides nondiscriminatory incentives for independent and identical agents. The principal cannot observe the agents' actions, nor does she know the entire set of actions available to them. It is shown, very generally, that any…

Theoretical Economics · Economics 2024-01-31 Ashwin Kambhampati

Principal agent games are a growing area of research which focuses on the optimal behaviour of a principal and an agent, with the former contracting work from the latter, in return for providing a monetary award. While this field…

Mathematical Finance · Quantitative Finance 2022-06-28 Dena Firoozi , Arvind V Shrivats , Sebastian Jaimungal

This paper studies a dynamic screening model in which a principal hires an agent with limited liability. The agent's private cost of working is an i.i.d. draw from a continuous distribution. His working status is publicly observable. The…

Theoretical Economics · Economics 2025-11-26 Yijun Liu

In this paper we present a variational calculus approach to Principal-Agent problem with a lump-sum payment on finite horizon in degenerate stochastic systems, such as filtered partially observed linear systems. Our work extends the…

Probability · Mathematics 2019-10-24 Kaitong Hu , Zhenjie Ren , Nizar Touzi

We consider a dynamic moral hazard problem between a principal and an agent, where the sole instrument the principal has to incentivize the agent is the disclosure of information. The principal aims at maximizing the (discounted) number of…

Theoretical Economics · Economics 2021-03-09 Wei Zhao , Claudio Mezzetti , Ludovic Renou , Tristan Tomala

Environments with fixed adjustment costs such as transaction costs or \lq menu costs\rq$ $ are widespread within economic systems. The presence of fixed minimal adjustment costs produces adjustment stickiness so that agents must choose a…

Optimization and Control · Mathematics 2019-10-09 David Mguni

We consider a hidden-action principal-agent model, in which actions require different amounts of effort, and the agent privately knows his ability that determines his cost of effort. We show that linear contracts admit approximation…

Computer Science and Game Theory · Computer Science 2025-03-05 Tal Alon , Paul Dütting , Yingkai Li , Inbal Talgam-Cohen

We study multi-agent contracts, in which a principal delegates a task to multiple agents and incentivizes them to exert effort. Prior research has mostly focused on maximizing the principal's utility, often resulting in highly disparate…

Computer Science and Game Theory · Computer Science 2026-01-26 Ke Ding , Bo Li , Ankang Sun

We introduce a dynamic mechanism design problem in which the designer wants to offer for sale an item to an agent, and another item to the same agent at some point in the future. The agent's joint distribution of valuations for the two…

Computer Science and Game Theory · Computer Science 2023-05-22 Christos Papadimitriou , George Pierrakos , Christos-Alexandros Psomas , Aviad Rubinstein
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