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Related papers: Contract Design Under Approximate Best Responses

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This paper considers the hidden-action model of the principal-agent problem, in which a principal incentivizes an agent to work on a project using a contract. We investigate whether contracts with bounded payments are learnable and…

Computer Science and Game Theory · Computer Science 2024-02-23 Yurong Chen , Zhaohua Chen , Xiaotie Deng , Zhiyi Huang

We study principal-agent problems in which a principal commits to an outcome-dependent payment scheme -- called contract -- in order to induce an agent to take a costly, unobservable action leading to favorable outcomes. We consider a…

Computer Science and Game Theory · Computer Science 2024-06-10 Francesco Bacchiocchi , Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

In principal-agent models, a principal offers a contract to an agent to perform a certain task. The agent exerts a level of effort that maximizes her utility. The principal is oblivious to the agent's chosen level of effort, and conditions…

Computer Science and Game Theory · Computer Science 2022-07-14 Alon Cohen , Moran Koren , Argyrios Deligkas

We consider the principal-agent problem with heterogeneous agents. Previous works assume that the principal signs independent incentive contracts with every agent to make them invest more efforts on the tasks. However, in many…

Multiagent Systems · Computer Science 2019-11-12 Shenke Xiao , Zihe Wang , Mengjing Chen , Pingzhong Tang , Xiwang Yang

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 hidden-action principal-agent problems in which a principal commits to an outcome-dependent payment scheme (called contract) so as to incentivize the agent to take a costly, unobservable action leading to favorable outcomes. In…

Computer Science and Game Theory · Computer Science 2022-08-18 Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

In the classical principal-agent problem, a principal must design a contract to incentivize an agent to perform an action on behalf of the principal. We study the classical principal-agent problem in a setting where the agent can be of one…

Computer Science and Game Theory · Computer Science 2020-10-15 Guru Guruganesh , Jon Schneider , Joshua Wang

We study hidden-action principal-agent problems with multiple agents. These are problems in which a principal commits to an outcome-dependent payment scheme in order to incentivize some agents to take costly, unobservable actions that lead…

Computer Science and Game Theory · Computer Science 2023-02-01 Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

We consider the classic principal-agent model of contract theory, in which a principal designs an outcome-dependent compensation scheme to incentivize an agent to take a costly and unobservable action. When all of the model…

Computer Science and Game Theory · Computer Science 2020-08-11 Paul Dütting , Tim Roughgarden , Inbal Talgam-Cohen

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 a principal-agent team production model. The principal hires a team of agents to participate in a common production task. The exact effort of each agent is unobservable and unverifiable, but the total production outcome (e.g. the…

Computer Science and Game Theory · Computer Science 2025-05-27 Shiliang Zuo

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

In the classical principal-agent hidden-action contract model, a principal delegates the execution of a costly task to an agent. In order to complete the task, the agent chooses an action from a set of actions, where each potential action…

Computer Science and Game Theory · Computer Science 2025-11-27 Tomer Ezra , Stefano Leonardi , Matteo Russo

In this paper we study a principal-agent problem in continuous time with multiple lump-sum payments (contracts) paid at different deterministic times. We reduce the non-zero sum Stackelberg game between the principal and agent to a standard…

Optimization and Control · Mathematics 2024-11-08 Guillermo Alonso Alvarez , Erhan Bayraktar , Ibrahim Ekren , Liwei Huang

We study principal-agent problems where a farsighted agent takes costly actions in an MDP. The core challenge in these settings is that agent's actions are hidden to the principal, who can only observe their outcomes, namely state…

Computer Science and Game Theory · Computer Science 2024-10-18 Matteo Bollini , Francesco Bacchiocchi , Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

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

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 initiate the study of computing (near-)optimal contracts in succinctly representable principal-agent settings. Here optimality means maximizing the principal's expected payoff over all incentive-compatible contracts---known in economics…

Data Structures and Algorithms · Computer Science 2020-02-28 Paul Duetting , Tim Roughgarden , Inbal Talgam-Cohen

We study a ubiquitous learning challenge in online principal-agent problems during which the principal learns the agent's private information from the agent's revealed preferences in historical interactions. This paradigm includes important…

Computer Science and Game Theory · Computer Science 2024-01-01 Minbiao Han , Michael Albert , Haifeng Xu

In this paper, we consider a problem of contract theory in which several Principals hire a common Agent and we study the model in the continuous time setting. We show that optimal contracts should satisfy some equilibrium conditions and we…

Optimization and Control · Mathematics 2018-01-15 Thibaut Mastrolia , Zhenjie Ren
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