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Related papers: Online Contract Design

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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

We study the classic principal-agent model when the signal observed by the principal is chosen by the agent. We fully characterize the optimal information structure from an agent's perspective in a general moral hazard setting with limited…

Theoretical Economics · Economics 2023-07-25 Majid Mahzoon , Ali Shourideh , Ariel Zetlin-Jones

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

A principal contracts with an agent who sequentially searches over projects to generate a prize. The principal initially knows only one of the agent's available projects and evaluates a contract by its worst-case performance. We…

Theoretical Economics · Economics 2025-09-17 Théo Durandard , Udayan Vaidya , Boli Xu

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

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 agency problem emerges in today's large scale machine learning tasks, where the learners are unable to direct content creation or enforce data collection. In this work, we propose a theoretical framework for aligning economic interests…

Machine Learning · Computer Science 2024-07-03 Jibang Wu , Siyu Chen , Mengdi Wang , Huazheng Wang , Haifeng Xu

We study a natural application of contract design in the context of sequential exploration problems. In our principal-agent setting, a search task is delegated to an agent. The agent performs a sequential exploration of $n$ boxes, suffers…

Computer Science and Game Theory · Computer Science 2025-01-27 Martin Hoefer , Conrad Schecker , Kevin Schewior

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

In an online contract selection problem there is a seller which offers a set of contracts to sequentially arriving buyers whose types are drawn from an unknown distribution. If there exists a profitable contract for the buyer in the offered…

Machine Learning · Computer Science 2013-05-16 Cem Tekin , Mingyan Liu

The increasing deployment of AI is shaping the future landscape of the internet, which is set to become an integrated ecosystem of AI agents. Orchestrating the interaction among AI agents necessitates decentralized, self-sustaining…

Computer Science and Game Theory · Computer Science 2024-10-08 Dima Ivanov , Paul Dütting , Inbal Talgam-Cohen , Tonghan Wang , David C. Parkes

We consider the robust contract design problem when the principal only has limited information about the actions the agent can take. The principal evaluates a contract according to its worst-case performance caused by the uncertain action…

Theoretical Economics · Economics 2024-06-18 Bo Peng , Zhihao Gavin Tang

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

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

Augmenting the input of algorithms with predictions is an algorithm design paradigm that suggests leveraging a (possibly erroneous) prediction to improve worst-case performance guarantees when the prediction is perfect (consistency), while…

Computer Science and Game Theory · Computer Science 2025-11-20 Georgios Amanatidis , Evangelos Markakis , Christodoulos Santorinaios , Guido Schäfer , Panagiotis Tsamopoulos , Artem Tsikiridis

We consider the design of experiments to evaluate treatments that are administered by self-interested agents, each seeking to achieve the highest evaluation and win the experiment. For example, in an advertising experiment, a company wishes…

Methodology · Statistics 2015-09-18 Panos Toulis , David C. Parkes , Elery Pfeffer , James Zou

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

We study the fundamental problem of designing contracts in principal-agent problems under uncertainty. Previous works mostly addressed Bayesian settings in which principal's uncertainty is modeled as a probability distribution over agent's…

Computer Science and Game Theory · Computer Science 2024-02-22 Martino Bernasconi , Matteo Castiglioni , Alberto Marchesi

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 study the hidden-action principal-agent problem in an online setting. In each round, the principal posts a contract that specifies the payment to the agent based on each outcome. The agent then makes a strategic choice of action that…

Computer Science and Game Theory · Computer Science 2023-05-23 Banghua Zhu , Stephen Bates , Zhuoran Yang , Yixin Wang , Jiantao Jiao , Michael I. Jordan