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We study the design of effort-maximizing grading schemes between agents with private abilities. Assuming agents derive value from the information their grade reveals about their ability, we find that more informative grading schemes induce…

Computer Science and Game Theory · Computer Science 2024-11-11 Sumit Goel

This paper studies an incentive structure for cooperation and its stability in peer-assisted services when there exist multiple content providers, using a coalition game theoretic approach. We first consider a generalized coalition…

Computer Science and Game Theory · Computer Science 2015-03-17 Jeong-woo Cho , Yung Yi

Institutions can provide incentives to increase cooperation behaviour in a population where this behaviour is infrequent. This process is costly, and it is thus important to optimize the overall spending. This problem can be mathematically…

Optimization and Control · Mathematics 2021-11-17 Manh Hong Duong , The Anh Han

In this paper, we rigorously study the problem of cost optimisation of hybrid (mixed) institutional incentives, which are a plan of actions involving the use of reward and punishment by an external decision-maker, for maximising the level…

Populations and Evolution · Quantitative Biology 2023-10-09 M. H. Duong , C. M. Durbac , T. A. Han

We consider the situation where multiple transportation service providers cooperate to offer an integrated multi-modal platform to enhance the convenience to the passengers through ease in multi-modal journey planning, payment, and first…

Systems and Control · Electrical Eng. & Systems 2022-06-29 Yuntian Deng , Shiping Shao , Archak Mittal , Richard Twumasi-Boakye , James Fishelson , Abhishek Gupta , Ness B. Shroff

Peer-To-Peer (P2P) networks are self-organizing, distributed systems, with no centralized authority or infrastructure. Because of the voluntary participation, the availability of resources in a P2P system can be highly variable and…

Computer Science and Game Theory · Computer Science 2007-05-23 Chiranjeeb Buragohain , Divyakant Agrawal , Subhash Suri

In software-engineering research, many empirical studies are conducted with open-source or industry developers. However, in contrast to other research communities like economics or psychology, only few experiments use financial incentives…

Software Engineering · Computer Science 2024-09-17 Dmitri Bershadskyy , Jacob Krüger , Gül Çalıklı , Siegmar Otto , Sarah Zabel , Jannik Greif , Robert Heyer

This paper introduces a model of a stylized organization that is comprised of several departments that autonomously allocate tasks. To do so, the departments either take short-sighted decisions that immediately maximize their utility or…

General Economics · Economics 2021-05-12 Stephan Leitner

When machine learning is outsourced to a rational agent, conflicts of interest might arise and severely impact predictive performance. In this work, we propose a theoretical framework for incentive-aware delegation of machine learning…

Machine Learning · Computer Science 2023-12-07 Eden Saig , Inbal Talgam-Cohen , Nir Rosenfeld

Social norms are rules and standards of expected behavior that emerge in societies as a result of information exchange between agents. This paper studies the effects of emergent social norms on the performance of teams. We use the…

General Economics · Economics 2021-04-15 Ravshanbek Khodzhimatov , Stephan Leitner , Friederike Wall

This paper reports experimental data describing the dynamics of three key information-sharing outcomes: quantity of information shared, falsification and accuracy. The experimental design follows a formal model predicting that cooperative…

Computer Science and Game Theory · Computer Science 2013-05-23 Nathan Berg , Chunyu Chen , Murat Kantarcioglu

This article shows how coworker performance affects individual performance evaluation in a teamwork setting at the workplace. We use high-quality data on football matches to measure an important component of individual performance, shooting…

General Economics · Economics 2024-03-25 Enzo Brox , Michael Lechner

I study how organizations assign tasks to identify the best candidate to promote among a pool of workers. Task allocation and workers' motivation interact through the organization's promotion decisions. The organization designs the workers'…

Theoretical Economics · Economics 2023-08-11 Théo Durandard

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

Linear contracts are ubiquitous in practice, yet optimal contract theory often prescribes complex, nonlinear structures. We provide a distributional robustness justification for linear contracts. We study a principal-agent problem where the…

Computer Science and Game Theory · Computer Science 2026-04-28 Shiliang Zuo

We study optimal contract design for large populations of heterogeneous agents whose actions generate network spillovers represented by an interaction function. In a linear-quadratic framework, we solve the finite-agent problem and its…

Theoretical Economics · Economics 2026-05-19 Guillermo Alonso Alvarez , Erhan Bayraktar , Ibrahim Ekren

Contract theory studies how a principal can incentivize agents to exert costly, unobservable effort through performance-based payments. While classical economic models provide elegant characterizations of optimal solutions, modern…

Computer Science and Game Theory · Computer Science 2025-10-20 Michal Feldman

The implementation of a supervision and incentive process for identical workers may lead to wage variance that stems from employer and employee optimization. The harder it is to assess the nature of the labor output, the more important such…

Econometrics · Economics 2018-06-06 Nitsa Kasir , Idit Sohlberg

How much do worker skills, firm pay policies, and their interaction contribute to wage inequality? Standard approaches rely on latent fixed effects identified through worker mobility, but sparse networks inflate variance estimates,…

General Economics · Economics 2026-01-05 Aslan Bakirov , Francesco Del Prato , Paolo Zacchia

Combined prosocial incentives, integrating reward for cooperators and punishment for defectors, are effective tools to promote cooperation among competing agents in population games. Existing research concentrated on how to adjust reward or…

Optimization and Control · Mathematics 2023-12-06 Shengxian Wang , Ming Cao , Xiaojie Chen