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We introduce a novel model of contracts with combinatorial actions that accounts for sequential and adaptive agent behavior. As in the standard model, a principal delegates the execution of a costly project to an agent. There are $n$…

Computer Science and Game Theory · Computer Science 2025-04-22 Tomer Ezra , Michal Feldman , Maya Schlesinger

We study a general class of Principal-Agent problems in continuous time under hidden action. By formulating the model as a coupled stochastic optimal control problem we are able to find a set of necessary conditions characterizing optimal…

Optimization and Control · Mathematics 2014-11-27 Boualem Djehiche , Peter Helgesson

We study the design of decision-making mechanism for resource allocations over a multi-agent system in a dynamic environment. Agents' privately observed preference over resources evolves over time and the population is dynamic due to the…

Systems and Control · Electrical Eng. & Systems 2020-05-20 Tao Zhang , Quanyan Zhu

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).…

Theoretical Economics · Economics 2021-12-14 Jean-Gabriel Lauzier

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

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…

Theoretical Economics · Economics 2025-09-09 Hongcheng Li

This paper studies optimal contract design in private market investing, focusing on internal decision making in venture capital and private equity firms. A principal relies on an agent who privately exerts costly due diligence effort and…

Computer Science and Game Theory · Computer Science 2025-12-23 Jussi Keppo , Yingkai Li

A principal who values an object allocates it to one or more agents. Agents learn private information (signals) from an information designer about the allocation payoff to the principal. Monetary transfer is not available but the principal…

Theoretical Economics · Economics 2022-10-31 Yi-Chun Chen , Gaoji Hu , Xiangqian Yang

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

A principal hires an agent to acquire soft information about an unknown state. Even though neither how the agent learns nor what the agent discovers are contractible, we show the principal is unconstrained as to what information the agent…

Theoretical Economics · Economics 2023-07-31 Mark Whitmeyer , Kun Zhang

A well-intentioned principal provides information to a rationally inattentive agent without internalizing the agent's cost of processing information. Whatever information the principal makes available, the agent may choose to ignore some.…

Theoretical Economics · Economics 2022-03-04 Elliot Lipnowski , Laurent Mathevet , Dong Wei

In many two-sided markets, the parties to be matched have incomplete information about their characteristics. We consider the settings where the parties engaged are extremely patient and are interested in long-term partnerships. Hence, once…

Computer Science and Game Theory · Computer Science 2019-08-30 Kartik Ahuja , Mihaela van der Schaar

The problem of controlling multi-agent systems under different models of information sharing among agents has received significant attention in the recent literature. In this paper, we consider a setup where rather than committing to a…

Optimization and Control · Mathematics 2021-04-23 Sagar Sudhakara , Dhruva Kartik , Rahul Jain , Ashutosh Nayyar

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 how a principal can jointly shape an agent's timing and action through information. We develop a revelation principle: with intertemporal commitment, the problem simplifies to choosing a joint distribution over stopping times and…

Theoretical Economics · Economics 2025-11-26 Andrew Koh , Sivakorn Sanguanmoo , Weijie Zhong

We introduce and study a computational version of the principal-agent problem -- a classic problem in Economics that arises when a principal desires to contract an agent to carry out some task, but has incomplete information about the agent…

Computer Science and Game Theory · Computer Science 2023-05-18 David Hyland , Julian Gutierrez , Michael Wooldridge

This paper deals with solving distributed optimization problems with equality constraints by a class of uncertain nonlinear heterogeneous dynamic multi-agent systems. It is assumed that each agent with an uncertain dynamic model has limited…

Systems and Control · Electrical Eng. & Systems 2022-06-28 Mohammad Saeed Sarafraz , Mohammad Saleh Tavazoei

Commitment devices are powerful tools that can influence and incentivise certain behaviours by linking them to rewards or punishments. These devices are particularly useful in decision-making, as they can steer individuals towards specific…

Computer Science and Game Theory · Computer Science 2023-12-11 Maria Alejandra Ramirez , Yoav Kolumbus , Rosemarie Nagel , David Wolpert , Jürgen Jost

We study the problem faced by a service provider that has to sell services to a user. In our model the service provider proposes various payment options (a menu) to the user which may be based, for example, on the quality of the service.…

Computer Science and Game Theory · Computer Science 2024-02-27 Martino Bernasconi , Matteo Castiglioni , Andrea Celli

In reinforcement learning, agents learn by performing actions and observing their outcomes. Sometimes, it is desirable for a human operator to \textit{interrupt} an agent in order to prevent dangerous situations from happening. Yet, as part…

Artificial Intelligence · Computer Science 2017-05-23 El Mahdi El Mhamdi , Rachid Guerraoui , Hadrien Hendrikx , Alexandre Maurer
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