Minimax-Optimal Online Contract Design with Unrestricted Bounded Contracts
The paper proves minimax-optimal regret of order T^(m/(m+1)) for repeated online contract design with unrestricted bounded contracts and arbitrary agent action spaces.
The study analyzes repeated contract design where a principal observes outcomes but not agent actions, allowing arbitrary bounded outcome-contingent payment vectors. For any fixed number m of outcomes with m>=2, minimax regret over T rounds is of order T^(m/(m+1)) up to logarithmic factors, matched by upper and lower bounds. The upper bound uses an effective-dimension reduction and revealed preference in payment-difference coordinates, without smoothness or monotone-surplus assumptions, while the lower bound shows each additional contractible outcome increases worst-case learning cost.