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As large language models (LLMs) increasingly act as autonomous agents in markets and organizations, their behavior in strategic environments becomes economically consequential. We document that off-the-shelf LLM agents exhibit systematic…

General Economics · Economics 2026-03-16 Wei Lu , Amit Dhanda , Daniel L. Chen , Christian B. Hansen

Generative models, particularly Large Language Models (LLMs), produce fluent outputs yet lack verifiable guarantees. We adapt Design by Contract (DbC) and type-theoretic principles to introduce a contract layer that mediates every LLM call.…

Machine Learning · Computer Science 2025-11-04 Claudiu Leoveanu-Condrei

Being prompted to engage in reasoning has emerged as a core technique for using large language models (LLMs), deploying additional inference-time compute to improve task performance. However, as LLMs increase in both size and adoption,…

Computation and Language · Computer Science 2025-06-25 C. Nicolò De Sabbata , Theodore R. Sumers , Badr AlKhamissi , Antoine Bosselut , Thomas L. Griffiths

The remarkable capabilities of Large Language Model (LLM)-driven agents have enabled sophisticated systems to tackle complex, multi-step tasks, but their escalating costs threaten scalability and accessibility. This work presents the first…

This paper proposes a novel continuous-time dynamic contract framework that has a risk-limiting capability. If a principal and an agent enter into such a contract, the principal can optimally manage its performance and risk with a guarantee…

Optimization and Control · Mathematics 2014-10-10 Insoon Yang , Duncan S. Callaway , Claire J. Tomlin

We consider moral hazard problems where a principal has access to rich monitoring data about an agent's action. Rather than focusing on optimal contracts (which are known to in general be complicated), we characterize the optimal rate at…

Theoretical Economics · Economics 2024-07-04 Mira Frick , Ryota Iijima , Yuhta Ishii

Smart contracts are computer programs that are executed by a network of mutually distrusting agents, without the need of an external trusted authority. Smart contracts handle and transfer assets of considerable value (in the form of…

Programming Languages · Computer Science 2018-06-19 Krishnendu Chatterjee , Amir Kafshdar Goharshady , Yaron Velner

Recent developments in text classification using Large Language Models (LLMs) in the social sciences suggest that costs can be cut significantly, while performance can sometimes rival existing computational methods. However, with a wide…

Computation and Language · Computer Science 2026-03-27 Erkan Gunes , Christoffer Florczak , Tevfik Murat Yildirim

Agentic AI, often powered by large language models (LLMs), is becoming increasingly popular and adopted to support autonomous reasoning, decision-making, and task execution across various domains. While agentic AI holds great promise, its…

Computer Science and Game Theory · Computer Science 2025-05-28 Ya-Ting Yang , Quanyan Zhu

Prompt optimization improves the reasoning abilities of large language models (LLMs) without requiring parameter updates to the target model. Following heuristic-based "Think step by step" approaches, the field has evolved in two main…

Computation and Language · Computer Science 2025-07-25 Andreea Nica , Ivan Zakazov , Nicolas Mario Baldwin , Saibo Geng , Robert West

Large Language Models (LLMs) have shown remarkable reasoning capabilities in mathematical and scientific tasks. To enhance complex reasoning, multi-agent systems have been proposed to harness the collective intelligence of LLM agents.…

Artificial Intelligence · Computer Science 2025-10-22 Zhenyu Bi , Meng Lu , Yang Li , Swastik Roy , Weijie Guan , Morteza Ziyadi , Xuan Wang

Principal-agent problems arise when one party acts on behalf of another, leading to conflicts of interest. The economic literature has extensively studied principal-agent problems, and recent work has extended this to more complex scenarios…

Artificial Intelligence · Computer Science 2024-01-02 Omer Ben-Porat , Yishay Mansour , Michal Moshkovitz , Boaz Taitler

We introduce \textsc{Cattle Trade, a multi-agent benchmark for evaluating large language models (LLMs) as agents in strategic reasoning under imperfect information, adversarial interaction, and resource constraints. The benchmark combines…

Artificial Intelligence · Computer Science 2026-05-15 Robert Müller , Clemens Müller

Likelihood training and maximization-based decoding result in dull and repetitive generated texts even when using powerful language models (Holtzman et al., 2019). Adding a loss function for regularization was shown to improve text…

Computation and Language · Computer Science 2021-01-13 Evgeny Lagutin , Daniil Gavrilov , Pavel Kalaidin

This paper presents a systematic survey on recent development of neural text generation models. Specifically, we start from recurrent neural network language models with the traditional maximum likelihood estimation training scheme and…

Computation and Language · Computer Science 2018-03-21 Sidi Lu , Yaoming Zhu , Weinan Zhang , Jun Wang , Yong Yu

We consider a crowdsourcing data acquisition scenario, such as federated learning, where a Center collects data points from a set of rational Agents, with the aim of training a model. For linear regression models, we show how a payment…

Machine Learning · Computer Science 2019-09-02 Adam Richardson , Aris Filos-Ratsikas , Boi Faltings

Data contracts formalize agreements between data producers and consumers regarding schema, semantics, and quality expectations. As data pipelines grow in complexity, manual authoring and maintenance of contracts becomes error-prone and…

Databases · Computer Science 2025-07-30 Harshraj Bhoite

Self-rewarding have emerged recently as a powerful tool in the field of Natural Language Processing (NLP), allowing language models to generate high-quality relevant responses by providing their own rewards during training. This innovative…

Computer Vision and Pattern Recognition · Computer Science 2024-05-28 Safouane El Ghazouali , Arnaud Gucciardi , Umberto Michelucci

This research investigates prompt designs of evaluating generated texts using large language models (LLMs). While LLMs are increasingly used for scoring various inputs, creating effective prompts for open-ended text evaluation remains…

Computation and Language · Computer Science 2024-06-28 KuanChao Chu , Yi-Pei Chen , Hideki Nakayama

We propose a new principal-agent framework where a principal communicates a roadmap -- a set of plausible outcome models and a prior belief over them -- to guide an agent who is learning the value of innovation. The agent trusts the prior…

Theoretical Economics · Economics 2026-02-24 Florian Mudekereza
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