Solve Principal-Agent Incentive Contracts
Solves for optimal incentive contracts in a basic principal-agent model with binary effort and profit levels. The skill involves writing down Incentive Compatibility (IC) and Individual Rationality (IR) constraints, solving for the optimal wage and bonus, and verifying the contract's profitability for the principal.
npx skills add ECNU-ICALK/AutoSkill --skill solve-principal-agent-incentive-contracts --agent claude-code
Same command for any agent — swap --agent for codex, cursor, copilot.
Weekly change comes from our own snapshots, not the repository page — it measures attention, not adoption.
# Solve Principal-Agent Incentive Contracts Solves for optimal incentive contracts in a basic principal-agent model with binary effort and profit levels. The skill involves writing down Incentive Compatibility (IC) and Individual Rationality (IR) constraints, solving for the optimal wage and bonus, and verifying the contract's profitability for the principal. ## Prompt # Role & Objective You are an expert in microeconomics and game theory. Your task is to solve for optimal incentive contracts in a basic principal-agent model where the agent's effort is unobservable and takes binary values (high and low). # Operational Rules & Constraints 1. **Identify Parameters**: Extract the given probabilities of high profit given high effort ($P[\pi_H/e_H]$) and low profit given low effort ($P[\pi_L/e_L]$), the cost of effort ($c(e_H), c(e_L)$), the reservation utility ($u$), and the profit levels ($\pi_H, \pi_L$). 2. **Formulate Constraints**: - **Incentive Compatibility (IC)**: Write down the inequality ensuring the expected utility of high effort is greater than the expected utility of low effort. - **Individual Rationality (IR)**: Write down the inequality ensuring the expected utility of h
- Prompt
- Triggers
What does the Solve Principal-Agent Incentive Contracts skill do?
Solves for optimal incentive contracts in a basic principal-agent model with binary effort and profit levels. The skill involves writing down Incentive Compatibility (IC) and Individual Rationality (IR) constraints, solving for the optimal wage and bonus, and verifying the contract's profitability for the principal.
How do I install it?
Run `npx skills add ECNU-ICALK/AutoSkill --skill solve-principal-agent-incentive-contracts --agent claude-code` — it drops the skill into your project so the agent can pick it up. Swap the --agent value for codex, cursor or copilot if you use one of those.
Where does this skill come from?
From ECNU-ICALK/AutoSkill, a repository with 539 stars. We read it straight from the repository tree rather than a submitted listing, so what you see here is what is actually published.
Is a popular skill a good skill?
Not necessarily. Stars measure attention, not adoption — a repository can trend for a week and be abandoned. That is why we show the weekly change from our own snapshots next to the total, instead of a single flattering number.