Optimally Auditing Adversarial Agents

arXiv:2604.25085v1 Announce Type: cross Abstract: Fraud can pose a challenge in many resource allocation domains, including social service delivery and credit provision. For example, agents may misreport private information in order to gain benefits or access to credit. To mitigate this, a principal can design strategic audits to verify claims and penalize misreporting. In this paper, we introduce a general model of audit policy design as a principal-agent game with multiple agents, where the pr