Corpus ID: 221703320

On Heterogeneous Memory in Hidden-Action Setups: An Agent-Based Approach

  title={On Heterogeneous Memory in Hidden-Action Setups: An Agent-Based Approach},
  author={Patrick Reinwald and Stephan Leitner and Friederike Wall},
  journal={arXiv: Multiagent Systems},
We follow the agentization approach and transform the standard-hidden action model introduced by Holmstrom into an agent-based model. Doing so allows us to relax some of the incorporated rather "heroic" assumptions related to the (i) availability of information about the environment and the (ii) principal's and agent's cognitive capabilities (with a particular focus on their memory). In contrast to the standard hidden-action model, the principal and the agent are modeled to learn about the… Expand
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