{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/incentivizing-quality-text-generation-via","title":"Incentivizing Quality Text Generation via Statistical Contracts","arxiv_id":"2406.11118","date":"2024-06-17","proceeding":null,"authors":["Eden Saig","Ohad Einav","Inbal Talgam-Cohen"],"abstract":"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.","url_abs":"https://arxiv.org/abs/2406.11118v2","url_pdf":"https://arxiv.org/pdf/2406.11118v2.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"incentivizing-quality-text-generation-via","repo_url":"https://github.com/edensaig/llm-contracts","is_official":1,"mentioned_in_paper":1,"mentioned_in_github":0,"framework":"none","reach":null}],"tasks":[{"task_slug":"text-generation","task_name":"Text Generation"}],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":"https://app.syntology.ai/?focus=2406.11118","mcp":{"get_harvested_code_for_paper":{"arxiv_id":"2406.11118"}},"developers":"https://syntology.ai/developers","read_at":"2026-09-24T18:15:14+00:00","read_at_is":"when the build read Syntology's graph, not when any sample ran","claim":"Per-sample execution status on synthesized fixtures; not a correctness claim about the paper. Samples come from repositories linked to the paper, official or community; repo_kind says which.","repos":[{"provenance":"deterministic:regex_extraction","url":"https://github.com/edensaig/llm-contracts","reach":null}],"summary":{"unverified":1},"by_repo_kind":{"official":{"samples":1,"ran":0,"repositories":1}},"repo_kind_vocabulary":{"official":"The archive marks this repository official for the paper","named_in_paper":"The archive records that the paper mentions this repository; it is not marked official","listed":"In the archive's code links for this paper, not marked official and not recorded as mentioned in the paper","found_in_text":"Syntology found this repository in the paper's own text; whether it is the authors' implementation is not asserted","community":"Not in the archive's code links for this paper; a community repository Syntology harvested"},"n_pointer_only_for_licence":1,"samples":[{"code_sha256_prefix":"7ef0021cbe1b5857","entry":"LPContractOptimizer","repo":"edensaig/llm-contracts","repo_kind":"official","path":"statcontracts/optimize.py","file_url":"https://github.com/edensaig/llm-contracts/blob/HEAD/statcontracts/optimize.py","link_basis":"first_harvest_node","language":"python","status":"unverified","verification_level":0,"contract_check":null,"metamorphic_tier":null,"behaviour_fingerprint":false,"licence":"NONE","inline_ok":false,"mcp_get_code":{"code_sha256":"7ef0021cbe1b5857"}}]},"arxiv_metadata":null,"syntology_extracted_results":null}