We apply control theoretic and optimization techniques to adaptively design incentives for principal-agent problems in which the principal faces adverse selection its interaction with multiple agents. In particular, principal's objective depends on data from strategic decision makers (agents) whose decision-making process is unknown a priori. consider both cases where agents play best response ...

In this paper, a customer incentive scheme is proposed for retailers to build an effective demand response program over the peak demand period to minimize the financial risk. Firstly, an objective function is formulated based on the market operation and an optimal incentive price is derived from this objective function. Secondly, the incentive price is employed as a part of an incentive scheme ...