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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

Multi-agent contract design has largely evaluated contracts through the lens of pure Nash equilibria (PNE). This focus, however, is not without loss: In general, the principal can strictly gain by recommending a complex, possibly…

Computer Science and Game Theory · Computer Science 2025-11-25 Paul Dütting , Tomer Ezra , Michal Feldman , Thomas Kesselheim

We introduce and study the problem of designing optimal contracts under fairness constraints on the task assignments and compensations. We adopt the notion of envy-free (EF) and its relaxations, $\epsilon$-EF and envy-free up to one item…

Computer Science and Game Theory · Computer Science 2025-07-23 Matteo Castiglioni , Junjie Chen , Yingkai Li

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

A principal delegates a project to a team $S$ from a pool of $n$ agents. The project's value if all agents in $S$ exert costly effort is $f(S)$. To incentivize the agents to participate, the principal assigns each agent $i\in S$ a share…

Computer Science and Game Theory · Computer Science 2025-04-29 Gil Aharoni , Martin Hoefer , Inbal Talgam-Cohen

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

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 the combinatorial action model of contract design, a principal delegates a complex project to an agent, incentivizing a subset of actions from a ground set of $n$ actions, via a linear contract. Computing the optimal contract is a…

Computer Science and Game Theory · Computer Science 2026-04-17 Elizabeth Baldwin , Paul Duetting , Michal Feldman , Maya Schlesinger

Constrained maximization of submodular functions poses a central problem in combinatorial optimization. In many realistic scenarios, a number of agents need to maximize multiple submodular objectives over the same ground set. We study such…

Data Structures and Algorithms · Computer Science 2024-07-22 Georgios Amanatidis , Georgios Birmpas , Philip Lazos , Stefano Leonardi , Rebecca Reiffenhäuser

We investigate the mechanism design problem faced by a principal who hires \emph{multiple} agents to gather and report costly information. Then, the principal exploits the information to make an informed decision. We model this problem as a…

Computer Science and Game Theory · Computer Science 2023-07-13 Federico Cacciamani , Matteo Castiglioni , Nicola Gatti

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

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

A principal uses payments conditioned on stochastic outcomes of a team project to elicit costly effort from the team members. We develop a multi-agent generalization of a classic first-order approach to contract optimization by leveraging…

Theoretical Economics · Economics 2026-03-13 Krishna Dasaratha , Benjamin Golub , Anant Shah

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

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 continuous time contracting model in which a principal hires a risk averse agent to manage a project over a finite horizon and provides sequential payments whose timing is endogenously determined. The resulting nonzero-sum…

Theoretical Economics · Economics 2025-12-01 Guillermo Alonso Alvarez , Ibrahim Ekren , Liwei Huang

Principal-agent problems model scenarios where a principal incentivizes an agent to take costly, unobservable actions through the provision of payments. Such problems are ubiquitous in several real-world applications, ranging from…

Computer Science and Game Theory · Computer Science 2025-02-27 Francesco Bacchiocchi , Jiarui Gan , Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

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 the combinatorial contract design problem, introduced and studied by Dutting et. al. (2021, 2022), in both the single and multi-agent settings. Prior work has examined the problem when the principal's utility function is submodular…

Computer Science and Game Theory · Computer Science 2023-08-16 Ramiro Deo-Campo Vuong , Shaddin Dughmi , Neel Patel , Aditya Prasad

We study the problem of allocating indivisible goods among agents with additive valuation functions to achieve both fairness and efficiency under the constraint that each agent receives exactly the same number of goods (the \emph{balanced…

Computer Science and Game Theory · Computer Science 2026-03-09 Yasushi Kawase , Ryoga Mahara