mlsanityData to 14 Oct 2026

Overcoming the Incentive Collapse Paradox

arXiv 2603.27049 ↗First posted 27 Mar 2026stat.ML cs.LGcited by 0

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Abstract (arXiv)

AI-assisted task delegation is increasingly common, yet human effort in such systems is costly and typically unobserved. Recent work by Bastani and Cachon (2025); Sambasivan et al. (2021) shows that accuracy-based payment schemes suffer from incentive collapse: as AI accuracy improves, sustaining positive human effort requires unbounded payments. We study this phenomenon in a budget-constrained principal-agent framework with strategic human agents whose output accuracy depends on unobserved effort. Our first contribution is a general impossibility result showing that incentive collapse is not merely a limitation of simple linear payments, but arises for any payment rule based only on observed task accuracy.To overcome this barrier, we propose a sentinel-auditing payment mechanism that enforces a strictly positive and controllable level of human effort at finite cost, independent of AI accuracy. Building on this incentive-robust foundation, we develop an incentive-aware active statistical inference framework that jointly optimizes (i) the auditing rate and (ii) active sampling and budget allocation across tasks of varying difficulty to minimize the final statistical loss under a single budget. Experiments demonstrate improved cost-error tradeoffs relative to standard active learning and auditing-only baselines.

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References · 10

  1. 2021Retiring Adult: New Datasets for Fair Machine Learningcited by 449
  2. 2017Predict Responsibly: Improving Fairness and Accuracy by Learning to Defercited by 233
  3. 2023Prediction-Powered Inferencecited by 220
  4. 2021A Survey of Human-in-the-loop for Machine Learningcited by 215
  5. 2023LLMs Accelerate Annotation for Medical Information Extractioncited by 77
  6. 2024Active Statistical Inferencecited by 50
  7. 2022Sample Efficient Learning of Predictors that Complement Humanscited by 46
  8. 2024Beemo: Benchmark of Expert-edited Machine-generated Outputscited by 27
  9. 2024Towards Human-AI Complementarity with Prediction Setscited by 25
  10. 2018Quality Control in Crowdsourcing: A Survey of Quality Attributes, Assessment Techniques and Assurance Actionscited by 16

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