Sustainable Control of Active Systems: Decentralization and Incentive Compatibility

IFAC-PapersOnLine(2021)

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Abstract
Incentive compatible and strategy-proof mechanisms are designed for a set of Principal-agent problems under side payments. These mechanisms decompose the interaction of agents and allow the Principal to solve the incentive problem and the planning problem independently, reducing them to common optimization problems. The proposed mechanisms ensure agents communicate reliable data and execute plans. The use of these mechanisms may facilitate accounting of ethical and social aspects in organizational systems.
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Key words
Active system,mechanism design,incentive compatibility,truth-telling,decentralization,dominant-strategy equilibrium
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