This article is cited in 6 papers

Control in Social and Economic Systems

Optimal coordinated mechanisms in active systems and contract theory

A. K. Enaleev

Institute of Control Sciences of RAS

Abstract: The principal-agent model is considered, where the principal’s payoff depends on the monetary incentive she provides to the agent. We seek an optimal incentive scheme and prove that the, so-called, coordinated mechanisms are optimal for the principal. We also establish connection between the considered model and the adverse selection model in contact theory.

Keywords: plans and incentives coordination, open control principle, information reliability, optimal mechanism design, contract theory.

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