Incentivizing Quality Text Generation via Statistical Contracts
While the success of large language models (LLMs) increases demand for machine-generated text, current pay-per-token pricing schemes create a misalignment of incentives known in economics as moral hazard: Text-generating agents have strong incentive to cut costs by preferring a cheaper model over the cutting-edge one, and this can be done "behind the scenes" since the agent performs inference internally. In this work, we approach this issue from an economic perspective, by proposing a pay-for-performance, contract-based framework for incentivizing quality. We study a principal-agent game where the agent generates text using costly inference, and the contract determines the principal's payment for the text according to an automated quality evaluation. Since standard contract theory is inapplicable when internal inference costs are unknown, we introduce cost-robust contracts. As our main theoretical contribution, we characterize optimal cost-robust contracts through a direct correspondence to optimal composite hypothesis tests from statistics, generalizing a result of Saig et al. (NeurIPS'23). We evaluate our framework empirically by deriving contracts for a range of objectives and LLM evaluation benchmarks, and find that cost-robust contracts sacrifice only a marginal increase in objective value compared to their cost-aware counterparts.
Code (1)
Tasks
Text GenerationSimilar Papers 제목 키워드 기반
How Humans Help LLMs: Assessing and Incentivizing Human Preference Annotators
Human-annotated preference data play an important role in aligning large language models (LLMs). In this paper, we investigate the questions of assessing the performance of human annotators and incentivizing them to prov…
text annotationIncentivizing Forecasters to Learn: Summarized vs. Unrestricted Advice
How should forecasters be incentivized to acquire the most information when learning takes place over time? We address this question in the context of a novel dynamic mechanism design problem where a designer can incenti…
Deep Generative Model and Its Applications in Efficient Wireless Network Management: A Tutorial and Case Study
With the phenomenal success of diffusion models and ChatGPT, deep generation models (DGMs) have been experiencing explosive growth from 2022. Not limited to content generation, DGMs are also widely adopted in Internet of…
ManagementAn Empirical Study of AI-based Smart Contract Creation
The introduction of large language models (LLMs) like ChatGPT and Google Palm2 for smart contract generation seems to be the first well-established instance of an AI pair programmer. LLMs have access to a large number of…
Code GenerationInvestigating Strategies for Clause Recommendation
Clause recommendation is the problem of recommending a clause to a legal contract, given the context of the contract in question and the clause type to which the clause should belong. With not much prior work being done …
Text Generation