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Computational complexity of single-dimensional typed contracts with general action sets

Establish the computational complexity of computing an optimal deterministic menu of contracts in the single-dimensional cost-per-unit-of-effort model when the number of actions is arbitrary and the number of agent types is constant.

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Background

The survey shows a reduction from multi-dimensional to single-dimensional typed contract settings and reports tractability for constant actions. It pinpoints a remaining gap: the complexity when the number of actions is general and the number of types is constant.

Determining hardness or polynomial-time algorithms for this regime would sharpen the boundary between tractable and intractable typed contract design problems.

References

The complexity of the more general case with with a general number of actions and constantly-many types is, to our knowledge, open.

Algorithmic Contract Theory: A Survey (2412.16384 - Duetting et al., 20 Dec 2024) in Section 7.3 (A Reduction from Multi-Dimensional to Single-Dimensional Types) — footnote discussion