Learning Under Moral Hazard with Instrumental Regression and Generalized Method of Moments
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Abstract (arXiv)
Machine learning has become increasingly popular in informing data-driven policy-making. Policies influence behavior in individuals or populations, and ideally, through observational signals, policy-makers learn which policies are effective. However, in many settings, individual actions cannot be perfectly observed. This issue, known in economics as moral hazard, poses a significant challenge. In this work, we study the foundational multitasking principal-agent contract design problem and demonstrate how instrumental regression and the generalized method of moments (GMM) estimator can be used to estimate or learn a good contract. As a bonus result, we also give a uniformity characterization of the shape of the optimal contract.
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References · 18
- 2015Strategic Classificationcited by 256
- 2017Strategic Classification from Revealed Preferencescited by 126
- 2019Strategic Classification is Causal Modeling in Disguisecited by 92
- 2017Mostly Exploration-Free Algorithms for Contextual Banditscited by 85
- 2020Causal Strategic Linear Regressioncited by 65
- 2014Adaptive Contract Design for Crowdsourcing Markets: Bandit Algorithms for Repeated Principal-Agent Problemscited by 46
- 2021Reinforcement Learning for Ridesharing: An Extended Surveycited by 35
- 2022The Sample Complexity of Online Contract Designcited by 35
- 2018Simple versus Optimal Contractscited by 33
- 2021Strategic Instrumental Variable Regression: Recovering Causal Relationships From Strategic Responsescited by 32
- 2023Causal Strategic Classification: A Tale of Two Shiftscited by 30
- 2024Contracting with a Learning Agentcited by 22
6 more
- 2015Watch and Learn: Optimizing from Revealed Preferences Feedbackcited by 17
- 2021Combinatorial Contractscited by 12
- 2022Strategic Decision-Making in the Presence of Information Asymmetry: Provably Efficient RL with Algorithmic Instrumentscited by 9
- 2024Multi-Agent Combinatorial Contractscited by 5
- 2024Harnessing the Continuous Structure: Utilizing the First-order Approach in Online Contract Designcited by 4
- 2022Adaptive ECCM for Mitigating Smart Jammerscited by 1
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