Contract Theory

Contract theory, a field studying optimal agreement design under information asymmetry, is experiencing a surge of interest driven by applications in diverse areas like AI task allocation and data sharing. Current research focuses on developing incentive-compatible mechanisms, often leveraging machine learning models (e.g., large language models, reinforcement learning algorithms) to optimize resource allocation and encourage cooperation among agents, particularly in multi-agent systems. These advancements have significant implications for improving efficiency and fairness in various domains, from robotic service provision to federated learning and even the governance of AI agents.