We obtain the optimal contract for the government (principal) to regulate a manager (agent) who has a taste for empire-building that is his/her private information. This taste for empire-building is modeled as a utility premium that is proportional to the difference between the contracted output...

When contracting through software agents, disputes will inevitably arise. Thus there is an urgent need to find alternatives to litigation for resolving conflicts. Methods of Online Dispute Resolution (ODR) need to be considered to resolve such disputes. Having agents understanding what the...