Lune

SODA2026Top-tier venue

When Contracts Get Complex: Information-Theoretic Barriers

Paul Dütting, Michal Feldman, Yoav Gal Tzur, Aviad Rubinstein

2026Year

Abstract

In the combinatorial-action contract model (Dütting et al., FOCS'21) a principal delegates the execution of a complex project to an agent, who can choose any subset from a given set of actions. Each set of actions incurs a cost to the agent, given by a set function c, and induces an expected reward to the principal, given by a set function f . To incentivize the agent, the principal designs a contract that specifies the payment upon success, with the optimal contract being the one that maximizes the principal's utility.

It is known that with access to value queries no constant-approximation is possible for submodular f and additive c. A fundamental open problem is: does the problem become tractable with demand queries? We answer this question to the negative, by establishing that finding an optimal contract for submodular f and additive c requires exponentially many demand queries. We leverage the robustness of our techniques to extend and strengthen this result to different combinations of submodular/supermodular f and c; while allowing the principal to access f and c using arbitrary communication protocols.

Our results are driven by novel equal-revenue constructions when one of the functions is additive, immediately implying value query hardness. We then identify a new propertysparse demand -which allows us to strengthen these results to demand query hardness. Finally, by augmenting a perturbed version of these constructions with one additional action, thereby making both functions combinatorial, we establish exponential communication complexity.

Ask about this paper

Your agent reads all of it.

Lune indexed this paper to the last equation, along with the top-tier papers that cite it. Ask a question and the answer quotes them.

Questions to start from

Your agent calls

Luneget_paper_fulltext

Ask in Lune

Free to start. No credit card required.

Builds on10

Related papers

Dusk over the sea between two cliffs drawn in fine vertical lines