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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

Reward design is a critical part of the application of reinforcement learning, the performance of which strongly depends on how well the reward signal frames the goal of the designer and how well the signal assesses progress in reaching…

Machine Learning · Computer Science 2022-08-01 Yixiang Wang , Yujing Hu , Feng Wu , Yingfeng Chen

Dynamic decisions are pivotal to economic policy making. We show how existing evidence from randomized control trials can be utilized to guide personalized decisions in challenging dynamic environments with budget and capacity constraints.…

Econometrics · Economics 2024-11-26 Karun Adusumilli , Friedrich Geiecke , Claudio Schilter

We introduce a simple benchmark model of dynamic matching in networked markets, where agents arrive and depart stochastically and the network of acceptable transactions among agents forms a random graph. We analyze our model from three…

Computer Science and Game Theory · Computer Science 2014-02-18 Mohammad Akbarpour , Shengwu Li , Shayan Oveis Gharan

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

Peer prediction mechanisms are often adopted to elicit truthful contributions from crowd workers when no ground-truth verification is available. Recently, mechanisms of this type have been developed to incentivize effort exertion, in…

Computer Science and Game Theory · Computer Science 2016-12-05 Yang Liu , Yiling Chen

The hidden-action model provides an optimal sharing rule for situations in which a principal assigns a task to an agent who makes an effort to carry out the task assigned to him. However, the principal can only observe the task outcome but…

General Economics · Economics 2022-10-18 Stephan Leitner , Friederike Wall

This paper studies a dynamic optimal reinsurance and dividend-payout problem for an insurance company in a finite time horizon. The goal of the company is to maximize the expected cumulative discounted dividend payouts until bankruptcy or…

Mathematical Finance · Quantitative Finance 2022-06-28 Chonghu Guan , Zuo Quan Xu , Rui Zhou

A principal has $m$ identical objects to allocate among a group of $n$ agents. Objects are desirable and the principal's value of assigning an object to an agent is the agent's private information. The principal can verify up to $k$ agents,…

Theoretical Economics · Economics 2024-09-04 Albin Erlanson , Andreas Kleiner

We study linear contracts for combinatorial problems in multi-agent settings. In this problem, a principal designs a linear contract with several agents, each of whom can decide to take a costly action or not. The principal observes only…

Computer Science and Game Theory · Computer Science 2024-12-19 Kanstantsin Pashkovich , Jacob Skitsko

Maximizing long-term rewards is the primary goal in sequential decision-making problems. The majority of existing methods assume that side information is freely available, enabling the learning agent to observe all features' states before…

Machine Learning · Computer Science 2023-07-19 Saeed Ghoorchian , Evgenii Kortukov , Setareh Maghsudi

We consider a setting for Inverse Reinforcement Learning (IRL) where the learner is extended with the ability to actively select multiple environments, observing an agent's behavior on each environment. We first demonstrate that if the…

Artificial Intelligence · Computer Science 2016-01-26 Kareem Amin , Satinder Singh

Deep reinforcement learning has become an important paradigm for constructing agents that can enter complex multi-agent situations and improve their policies through experience. One commonly used technique is reactive training - applying…

Artificial Intelligence · Computer Science 2017-12-11 Alexander Peysakhovich , Adam Lerer

Randomized experiments can be susceptible to selection bias due to potential non-compliance by the participants. While much of the existing work has studied compliance as a static behavior, we propose a game-theoretic model to study…

Machine Learning · Computer Science 2021-07-29 Daniel Ngo , Logan Stapleton , Vasilis Syrgkanis , Zhiwei Steven Wu

Interest-free promotions are a prevalent strategy employed by credit card lenders to attract new customers, yet the research exploring their effects on both consumers and lenders remains relatively sparse. The process of selecting an…

Multiagent Systems · Computer Science 2023-11-27 Conor B. Hamill , Raad Khraishi , Simona Gherghel , Jerrard Lawrence , Salvatore Mercuri , Ramin Okhrati , Greig A. Cowan

Many incentive design problems must contend with information asymmetries due to non-observation of efficiency (adverse selection) or non-observation of effort (moral hazard). And although a growing body of literature considers incentive…

Optimization and Control · Mathematics 2026-05-04 Jaewon Jeong , Pan-Yang Su , S. Shankar Sastry , Anil Aswani

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

Real-world applications of reinforcement learning for recommendation and experimentation faces a practical challenge: the relative reward of different bandit arms can evolve over the lifetime of the learning agent. To deal with these…

Machine Learning · Computer Science 2022-06-29 Srivas Chennu , Andrew Maher , Jamie Martin , Subash Prabanantham

We study a multi-agent contract design problem with moral hazard. In our model, each agent exerts costly effort towards an individual task at which it may either succeed or fail, and the principal, who wishes to encourage effort, has an…

Theoretical Economics · Economics 2025-07-09 Sumit Goel , Wade Hann-Caruthers

Since a few years there is an increasing interest in minimizing the energy consumption of computing systems. However in a shared computing system, users want to optimize their experienced quality of service, at the price of a high energy…

Data Structures and Algorithms · Computer Science 2018-05-30 Christoph Dürr , Łukasz Jeż , Oscar C. Vásquez