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We design the insurance contract when the insurer faces arson-type risks. The optimal contract must be manipulation-proof. It is therefore continuous, it has a bounded slope, and it satisfies the no-sabotage condition when arson-type…

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

We study a multi-agent contracting problem where agents exert costly effort to achieve individually observable binary outcomes. While the principal can theoretically extract the full social welfare using a discriminatory contract that…

Computer Science and Game Theory · Computer Science 2026-02-13 Johannes Brustle , Paul Duetting , Stefano Leonardi , Tomasz Ponitka , Matteo Russo

Multi-agent Reinforcement Learning (MARL) is a powerful tool for training autonomous agents acting independently in a common environment. However, it can lead to sub-optimal behavior when individual incentives and group incentives diverge.…

Artificial Intelligence · Computer Science 2024-01-30 Andreas A. Haupt , Phillip J. K. Christoffersen , Mehul Damani , Dylan Hadfield-Menell

We investigate the impact of a regulation policy imposed on an agent exploiting a possibly renewable natural resource. We adopt a principal-agent model in which the Principal looks for a contract, i.e. taxes/compensations, leading the Agent…

Probability · Mathematics 2019-06-06 Idris Kharroubi , Thomas Lim , Thibaut Mastrolia

This paper focuses on safety critical control with sector-bounded uncertainties at the plant input. The uncertainties can represent nonlinear and/or time-varying components. We propose a new robust control barrier function (RCBF) approach…

Optimization and Control · Mathematics 2021-09-07 Jyot Buch , Shih-Chi Liao , Peter Seiler

We consider the problem of reducing the carbon emissions of a set of firms over a finite horizon. A regulator dynamically allocates emission allowances to each firm. Firms face idiosyncratic as well as common economic shocks on emissions,…

General Economics · Economics 2021-02-25 René Aïd , Sara Biagini

Making an informed decision -- for example, when choosing a career or housing -- requires knowledge about the available options. Such knowledge is generally acquired through costly trial and error, but this learning process can be disrupted…

Machine Learning · Computer Science 2022-04-15 Sarah H. Cen , Devavrat Shah

In robust optimization, the general aim is to find a solution that performs well over a set of possible parameter outcomes, the so-called uncertainty set. In this paper, we assume that the uncertainty size is not fixed, and instead aim at…

Optimization and Control · Mathematics 2016-06-24 André Chassein , Marc Goerigk

An agent chooses an action based on her private information and a recommendation from an informed but potentially misaligned adviser. With a known probability, the adviser truthfully reports his signal; with the remaining probability, he…

Theoretical Economics · Economics 2026-03-20 Piotr Dworczak , Alex Smolin

We investigate the problem of practical output regulation, i.e., to design a controller that brings the system output in the vicinity of a desired target value while keeping the other variables bounded. We consider uncertain systems that…

Optimization and Control · Mathematics 2021-07-19 Mohammad Saeed Sarafraz , Anton V. Proskurnikov , Mohammad Saleh Tavazoei , Peyman Mohajerin Esfahani

We examine an economy in which interactions are more productive if agents can trust others to refrain from cheating. Some agents are scoundrels, who cheat at every opportunity, while others cheat only if the cost of cheating, a decreasing…

Theoretical Economics · Economics 2024-11-28 Luca Anderlini , Larry Samuelson , Daniele Terlizzese

Herding, where investors imitate others' decisions rather than relying on their own analysis, is a prevalent phenomenon in financial markets. Excessive herding distorts rational decisions, amplifies volatility, and can be exploited by…

Mathematical Finance · Quantitative Finance 2026-04-14 Huisheng Wang , H. Vicky Zhao

We study the stable marriage problem in the partial information setting where the agents, although they have an underlying true strict linear order, are allowed to specify partial orders. Specifically, we focus on the case where the agents…

Computer Science and Game Theory · Computer Science 2018-10-09 Vijay Menon , Kate Larson

We use the theory of cooperative games for the design of fair insurance contracts. An insurance contract needs to specify the premium to be paid and a possible participation in the benefit (or surplus) of the company. It results from the…

Mathematical Finance · Quantitative Finance 2020-09-10 Delia Coculescu , Freddy Delbaen

Dynamic, risk-based pricing can systematically exclude vulnerable consumer groups from essential resources such as health insurance and consumer credit. We show that a regulator can realign private incentives with social objectives through…

Artificial Intelligence · Computer Science 2025-06-05 Jesse Thibodeau , Hadi Nekoei , Afaf Taïk , Janarthanan Rajendran , Golnoosh Farnadi

This dissertation is motivated by the need, in today's globalist world, for a precise way to enable governments, organisations and other regulatory bodies to evaluate the constraints they place on themselves and others. An organisation's…

Artificial Intelligence · Computer Science 2017-04-25 Thomas C. King

A large collection of financial contracts offering guaranteed minimum benefits are often posed as control problems, in which at any point in the solution domain, a control is able to take any one of an uncountable number of values from the…

Pricing of Securities · Quantitative Finance 2015-11-06 Parsiad Azimzadeh , Peter A. Forsyth

Robust control theory has been successfully applied to numerous real-world problems using a small set of devices called {\it controllers}. However, the real systems represented by networks contain unreliable components and modern robust…

Physics and Society · Physics 2015-06-23 Jose C. Nacher , Tatsuya Akutsu

Today's control systems are often characterized by modularity and safety requirements to handle complexity, resulting in hierarchical control structures. Although hierarchical model predictive control offers favorable properties, achieving…

Systems and Control · Electrical Eng. & Systems 2025-04-17 Felix Berkel , Kim Peter Wabersich , Hongxi Xiang , Elias Milios

The problem of computing near-optimal contracts in combinatorial settings has recently attracted significant interest in the computer science community. Previous work has provided a rich body of structural and algorithmic insights into this…

Computer Science and Game Theory · Computer Science 2025-06-26 Michal Feldman , Yoav Gal-Tzur , Tomasz Ponitka , Maya Schlesinger
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