Microeconomic Foundations of Multi-Agent Learning

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Authors: Nassim Helou
Cited by: 0

Abstract

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.

Fields of Study & Subjects

Game Theory and Applications Reinforcement Learning in Robotics Advanced Bandit Algorithms Research

Publication details

Journal / source
arXiv (Cornell University)
Publication date
6 January 2026
Document type
Preprint