Project description
Expanding algorithmic contract theory for real world application
Contracts are economic tools by which a ‘principal’ incentivises ‘agents’ to exert paid effort on their behalf. Online contract negotiation has risen exponentially, including in areas like freelancing services and online courses. Furthermore, the scale and complexity of these contracts have increased tremendously, making the use of data both possible and critical in negotiations. Thus, an algorithmic approach to contract design is needed. Algorithmic contract theory, proposed in a pioneering 2006 paper, can meet this need. The ERC-funded FACT project, initiated by a co-author of the original paper, aims to advance algorithmic contract theory, enhancing its applicability to modern online contract negotiation and establishing a foundational theory for algorithmic contract design.
Objective
Algorithmic game theory (AGT) lies at the intersection of algorithms and incentives, offering a framework for the design of algorithms that provide incentives for collaboration in computational markets. AGT has played a pivotal role in shaping vital computing platforms. One of the most influential fields within AGT is algorithmic mechanism design, providing incentives for truthful revelation of private information.
An equally important intersection of algorithms and incentives arises in the design of algorithms incentivizing self-interested agents to exert costly effort in executing their tasks. Incentivizing effort was studied with great success in the economics field of contract theory.
As classic applications of effort incentivization move to computational platforms, including huge computational markets for freelancing services, marketing, and online courses, they grow in scale and complexity and become data-driven. In this evolving landscape, adopting an algorithmic approach to contract design is essential. This includes a language for analyzing the computational complexity of contracts in combinatorial settings, tools for studying simplicity-optimality tradeoffs, and a formalism for analyzing data-driven contracts.
In 2006, I co-authored the pioneering paper applying an algorithmic lens to contract design, marking the inception of the field of algorithmic contract theory (ACT) and foreshadowed future developments. However, it is only in recent years that the scientific landscape and computational platforms have matured to a stage where ACT has become a prominent field in AGT.
Preliminary research in ACT has been enlightening. However, the state of the art of ACT still lags far behind full applicability in Internet applications, largely due to disregard of crucial real-world aspects. The paramount goal of this project is to establish a foundational theory for algorithmic contract design that will bridge this gap and inform the design of real-world applications.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
You need to log in or register to use this function
We are sorry... an unexpected error occurred during execution.
You need to be authenticated. Your session might have expired.
Thank you for your feedback. You will soon receive an email to confirm the submission. If you have selected to be notified about the reporting status, you will also be contacted when the reporting status will change.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
-
HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
See all projects funded under this programme
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
See all projects funded under this funding scheme
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2024-COG
See all projects funded under this callHost institution
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
69978 Tel Aviv
Israel
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.