Microeconomic Foundations of Multi-Agent Learning
Modern AI systems increasingly operate inside markets and institutions where data, behavior, and incentives are endogenous. This paper develops an economic foundation for multi-agent learning by studying a principal-agent interaction in a Markov decision process with strategic externalities, where both the principal and the agent learn over time. We propose a two-phase incentive mechanism that first estimates implementable transfers and then uses them to steer long-run dynamics; under mild regret-based rationality and exploration conditions, the mechanism achieves sublinear social-welfare regret and thus asymptotically optimal welfare. Simulations illustrate how even coarse incentives can correct inefficient learning under stateful externalities, highlighting the necessity of incentive-aware design for safe and welfare-aligned AI in markets and insurance.
Jan-8-2026
- Country:
- Asia > Middle East
- Jordan (0.05)
- Europe
- France (0.04)
- Sweden > Stockholm
- Stockholm (0.04)
- United Kingdom > England
- Cambridgeshire > Cambridge (0.04)
- North America > United States
- New York (0.04)
- Asia > Middle East
- Genre:
- Research Report (1.00)
- Industry:
- Banking & Finance (0.68)
- Law (0.46)
- Leisure & Entertainment (0.68)