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200 papers

We consider a dynamic moral hazard problem between a principal and an agent, where the sole instrument the principal has to incentivize the agent is the disclosure of information. The principal aims at maximizing the (discounted) number of…

Theoretical Economics · Economics 2021-03-09 Wei Zhao , Claudio Mezzetti , Ludovic Renou , Tristan Tomala

There is a large body of evidence that decision makers frequently depart from Bayesian updating. This paper introduces a model, robust maximum likelihood (RML) updating, where deviations from Bayesian updating are due to multiple…

Theoretical Economics · Economics 2025-12-17 Elchin Suleymanov

Agents rarely act in isolation -- their behavioral history, in particular, is public to others. We seek a non-asymptotic understanding of how a leader agent should shape this history to its maximal advantage, knowing that follower agent(s)…

Computer Science and Game Theory · Computer Science 2019-05-29 Vidya Muthukumar , Anant Sahai

We show that when a third party, the adversary, steps into the two-party setting (agent and operator) of safely interruptible reinforcement learning, a trade-off has to be made between the probability of following the optimal policy in the…

Machine Learning · Computer Science 2018-05-30 Henrik Aslund , El Mahdi El Mhamdi , Rachid Guerraoui , Alexandre Maurer

We study a model of consensus decision making, in which a finite group of Bayesian agents has to choose between one of two courses of action. Each member of the group has a private and independent signal at his or her disposal, giving some…

Statistics Theory · Mathematics 2018-04-24 Elchanan Mossel , Omer Tamuz

Robotic manipulation behavior should be robust to disturbances that violate high-level task-structure. Such robustness can be achieved by constantly monitoring the environment to observe the discrete high-level state of the task. This is…

Robotics · Computer Science 2022-05-10 Manuel Baum , Oliver Brock

We study the problem of option pricing and hedging strategies within the frame-work of risk-return arguments. An economic agent is described by a utility function that depends on profit (an expected value) and risk (a variance). In the…

Statistical Mechanics · Physics 2008-12-02 Erik Aurell , Karol Życzkowski

An uninformed sender publicly commits to an informative experiment about an uncertain state, privately observes its outcome, and sends a cheap-talk message to a receiver. We provide an algorithm valid for arbitrary state-dependent…

Theoretical Economics · Economics 2024-05-10 Qianjun Lyu , Wing Suen

I study a repeated game in which a patient player (e.g., a seller) wants to win the trust of some myopic opponents (e.g., buyers) but can strictly benefit from betraying them. Her benefit from betrayal is strictly positive and is her…

Theoretical Economics · Economics 2020-06-16 Harry Pei

Reinforcement learning often uses neural networks to solve complex control tasks. However, neural networks are sensitive to input perturbations, which makes their deployment in safety-critical environments challenging. This work lifts…

Machine Learning · Computer Science 2024-08-20 Manuel Wendl , Lukas Koller , Tobias Ladner , Matthias Althoff

Robust MDPs (RMDPs) can be used to compute policies with provable worst-case guarantees in reinforcement learning. The quality and robustness of an RMDP solution are determined by the ambiguity set---the set of plausible transition…

Machine Learning · Computer Science 2019-02-21 Marek Petrik , Reazul Hasan Russell

A principal provides nondiscriminatory incentives for independent and identical agents. The principal cannot observe the agents' actions, nor does she know the entire set of actions available to them. It is shown, very generally, that any…

Theoretical Economics · Economics 2024-01-31 Ashwin Kambhampati

Agents receive private signals about an unknown state. The resulting joint belief distributions are complex and lack a simple characterization. Our key insight is that, when conditioned on the state, the structure of belief distributions…

Theoretical Economics · Economics 2024-11-19 Itai Arieli , Yakov Babichenko , Fedor Sandomirskiy

We consider a two-road dynamic routing game where the state of one of the roads (the "risky road") is stochastic and may change over time. This generates room for experimentation. A central planner may wish to induce some of the (finite…

Computer Science and Game Theory · Computer Science 2020-01-13 Emily Meigs , Francesca Parise , Asuman Ozdaglar , Daron Acemoglu

We model the joint distribution of choice probabilities and decision times in binary choice tasks as the solution to a problem of optimal sequential sampling, where the agent is uncertain of the utility of each action and pays a constant…

Neurons and Cognition · Quantitative Biology 2015-05-14 Drew Fudenberg , Philipp Strack , Tomasz Strzalecki

We consider a hidden-action principal-agent model, in which actions require different amounts of effort, and the agent privately knows his ability that determines his cost of effort. We show that linear contracts admit approximation…

Computer Science and Game Theory · Computer Science 2025-03-05 Tal Alon , Paul Dütting , Yingkai Li , Inbal Talgam-Cohen

We introduce a novel capabilities-based bi-directional multi-task trust model that can be used for trust prediction from either a human or a robotic trustor agent. Tasks are represented in terms of their capability requirements, while…

Robotics · Computer Science 2021-06-07 Hebert Azevedo-Sa , X. Jessie Yang , Lionel P. Robert , Dawn M. Tilbury

AI systems will soon have to navigate human environments and make decisions that affect people and other AI agents whose goals and values diverge. Contractualist alignment proposes grounding those decisions in agreements that diverse…

We consider the fundamental scenario where a single item is to be sold to one of two agents. Both agents draw their valuation for the item from the same probability distribution. However, only one of them submits a bid to the mechanism. The…

Computer Science and Game Theory · Computer Science 2025-08-26 Ioannis Caragiannis , Georgios Kalantzis

Since its inception, artificial intelligence has relied upon a theoretical foundation centered around perfect rationality as the desired property of intelligent systems. We argue, as others have done, that this foundation is inadequate…

Artificial Intelligence · Computer Science 2014-11-17 S. J. Russell , D. Subramanian