AI Alignment via Incentives and Correction
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Abstract (arXiv)
We study AI alignment through the lens of law-and-economics models of deterrence and enforcement. In these models, misconduct is not treated as an external failure, but as a strategic response to incentives: an actor weighs the gain from violation against the probability of detection and the severity of punishment. We argue that the same logic arises naturally in agentic AI pipelines. A solver may benefit from producing a persuasive but incorrect answer, hiding uncertainty, or exploiting spurious shortcuts, while an auditor or verifier must decide whether costly monitoring is worthwhile. Alignment is therefore a fixed-point problem: stronger penalties may deter solver misbehavior, but they can also reduce the auditor's incentive to inspect, since auditing then mainly incurs cost on a population that appears increasingly aligned. This perspective also changes what should count as a post-training signal. Standard feedback often attaches reward to the final answer alone, but a solver-auditor pipeline exposes the full correction event: whether the solver erred, whether the auditor inspected, whether the error was caught, and whether oversight incentives remained active. We formalize this interaction in a two-agent model in which a principal chooses rewards over joint correction outcomes, inducing both solver behavior and auditor monitoring. Reward design is therefore a bilevel optimization problem: rewards are judged not by their immediate semantic meaning, but by the behavioral equilibrium they induce. We propose a bandit-based outer-loop procedure for searching over reward profiles using noisy interaction feedback. Experiments on an LLM coding pipeline show that adaptive reward profiles can maintain useful oversight pressure and improve principal-aligned outcomes relative to static hand-designed rewards, including a substantial reduction in hallucinated incorrect attempts.
Key facts. Cited by 1 paper in the map (data through 7 Oct 2026). Builds on 24 of its 52 references that are in the map. First posted on arXiv 2 May 2026.
Builds on
24 of 52 references.
References · 24
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12 more
- 2025Monitoring Reasoning Models for Misbehavior and the Risks of Promoting Obfuscationcited by 338
- 2023AI Control: Improving Safety Despite Intentional Subversioncited by 207
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- 2023Of Models and Tin Men: A Behavioural Economics Study of Principal-Agent Problems in AI Alignment using Large-Language Models
- 2025The Law-Following AI Framework: Legal Foundations and Technical Constraints. Legal Analogues for AI Actorship and technical feasibility of Law Alignment
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