EconPapers    
Economics at your fingertips  
 

Approximating combinatorial contracts with a cardinality constraint

Qinqin Gong (), Ling Gai (), Yanjun Jiang (), Yang Lv () and Ruiqi Yang ()
Additional contact information
Qinqin Gong: Beijing University of Technology
Ling Gai: University of Shanghai for Science and Technology
Yanjun Jiang: Ludong University
Yang Lv: Beijing University of Technology
Ruiqi Yang: Beijing University of Technology

Journal of Combinatorial Optimization, 2025, vol. 49, issue 5, No 3, 16 pages

Abstract: Abstract We explore the problem of combinatorial contract design, a subject introduced and studied by Dütting et al. (2023). Previous research has focused on the challenge of selecting an unconstrained subset of agents, particularly when the principal’s utility function exhibits XOS or submodular characteristics related to the subset of agents that exert effort. Our study extends this existing line of research by examining scenarios in which the principal aims to select a subset of agents with a specific k-cardinality constraint. In these scenarios, the actions that each agent can take are binary values: effort or no effort. We focus on linear contracts, where the expected reward function is XOS or submodular. Our contribution is an approximation of 0.0197 for the problem of designing multi-agent hidden-action principal-agent contracts with the k-cardinality constraint. This result stands in contrast to the unconstrained setting, where Dütting et al. (2023) achieved an approximation of nearly 0.0039.

Keywords: Contracts design; Principal-agent model; Approximation algorithms (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10878-025-01307-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jcomop:v:49:y:2025:i:5:d:10.1007_s10878-025-01307-1

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/10878

DOI: 10.1007/s10878-025-01307-1

Access Statistics for this article

Journal of Combinatorial Optimization is currently edited by Thai, My T.

More articles in Journal of Combinatorial Optimization from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-05-23
Handle: RePEc:spr:jcomop:v:49:y:2025:i:5:d:10.1007_s10878-025-01307-1