Principal-Agent Reinforcement Learning: Orchestrating AI Agents with Contracts
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Abstract (arXiv)
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 mechanisms that harmonize the tension between individual interests and social welfare. In this paper we tackle this challenge by synergizing reinforcement learning with principal-agent theory from economics. Taken separately, the former allows unrealistic freedom of intervention, while the latter struggles to scale in sequential settings. Combining them achieves the best of both worlds. We propose a framework where a principal guides an agent in a Markov Decision Process (MDP) using a series of contracts, which specify payments by the principal based on observable outcomes of the agent's actions. We present and analyze a meta-algorithm that iteratively optimizes the policies of the principal and agent, showing its equivalence to a contraction operator on the principal's Q-function, and its convergence to subgame-perfect equilibrium. We then scale our algorithm with deep Q-learning and analyze its convergence in the presence of approximation error, both theoretically and through experiments with randomly generated binary game-trees. Extending our framework to multiple agents, we apply our methodology to the combinatorial Coin Game. Addressing this multi-agent sequential social dilemma is a promising first step toward scaling our approach to more complex, real-world instances.
Key facts. Cited by 8 papers in the map (data through 7 Oct 2026). Builds on 50 of its 93 references that are in the map. First posted on arXiv 25 Jul 2024.
Builds on
50 of 93 references.
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Built on by
Citing papers per year: 2024: 1; 2025: 3; 2026: 4.
8 papers.
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- 2026Reward Shaping for (Inference-Time) Alignment: A Stackelberg Game Perspectivecited by 2
- 2025Incentivizing High-Quality Human Annotations with Golden Questionscited by 0
- 2026Microeconomic Foundations of Multi-Agent Learningcited by 0
- 2026LLM Active Alignment: A Nash Equilibrium Perspectivecited by 0
- 2026Learning Principal-Agent Contracts for Equitable Smallholder Carbon Farming under Moral Hazard and Adverse Selectioncited by 0
- 2026Learning Principal-Agent Contracts for Equitable Smallholder Carbon Farming under Moral Hazard and Adverse Selection17 Sep 2026
- 2026LLM Active Alignment: A Nash Equilibrium Perspective6 Feb 2026
- 2026Reward Shaping for (Inference-Time) Alignment: A Stackelberg Game Perspective31 Jan 2026
- 2026Microeconomic Foundations of Multi-Agent Learning6 Jan 2026
- 2025Incentivizing High-Quality Human Annotations with Golden Questions25 May 2025
- 2025Internet of Agents: Fundamentals, Applications, and Challenges12 May 2025
- 2025Inherent and emergent liability issues in LLM-based agentic systems: a principal-agent perspective4 Apr 2025
- 2024Principal-Agent Bandit Games with Self-Interested and Exploratory Learning Agents20 Dec 2024