# Minimax-Optimal Online Contract Design with Unrestricted Bounded Contracts

arXiv: https://arxiv.org/abs/2609.20353 · HTML: https://mlsanity.com/paper/2609.20353/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 9 of its 20 references that are in the map.
- First posted on arXiv 17 Sep 2026.

## Builds on (most cited first, 9 of 9)

- [Adaptive Contract Design for Crowdsourcing Markets: Bandit Algorithms for Repeated Principal-Agent Problems](https://mlsanity.com/paper/1405.2875/) (2014)
- [The Sample Complexity of Online Contract Design](https://mlsanity.com/paper/2211.05732/) (2022)
- [Contracting with a Learning Agent](https://mlsanity.com/paper/2401.16198/) (2024)
- [Contracts under Moral Hazard and Adverse Selection](https://mlsanity.com/paper/2010.06742/) (2020)
- [Learning Approximately Optimal Contracts](https://mlsanity.com/paper/1811.06736/) (2018)
- [Are Bounded Contracts Learnable and Approximately Optimal?](https://mlsanity.com/paper/2402.14486/) (2024)
- [Harnessing the Continuous Structure: Utilizing the First-order Approach in Online Contract Design](https://mlsanity.com/paper/2403.07143/) (2024)
- [The Pseudo-Dimension of Contracts](https://mlsanity.com/paper/2501.14474/) (2025)
- [Contract Design Under Approximate Best Responses](https://mlsanity.com/paper/2502.15523/) (2025)

## Abstract (arXiv)

We study repeated contract design when a principal observes outcomes but not the actions that generate them. The principal may use any bounded outcome-contingent payment vector, and the agent's best response can make expected profit discontinuous in those payments. For every fixed number m≥2 of outcomes, the minimax regret over T rounds is of order Tm/(m+1), up to logarithmic factors. The upper bound allows arbitrary action spaces and agent heterogeneity, without smoothness or monotone-surplus assumptions. Its key is an effective-dimension reduction that the benchmark can be normalized even when fixed tie-breaking is not shift invariant, after which revealed preference yields a monotone response map in payment-difference coordinates. A learning policy built on a Lipschitz parametrization of this map attains the rate using only observed outcome categories. The lower-bound construction accounts for how incentive losses accumulate across outcome dimensions. It shows that each additional contractible outcome creates a precise and unavoidable increase in the worst-case cost of learning.
