Principal-Agent Hypothesis Testing

arXiv:2205.06812v3 Announce Type: replace-cross
Abstract: Consider the relationship between a regulator (the principal) and an experimenter (the agent) such as a pharmaceutical company. The pharmaceutical company wishes to sell a drug for profit, whereas the regulator wishes to allow only efficacious drugs to be marketed. The efficacy of the drug is not known to the regulator, so the pharmaceutical company must run a costly trial to prove efficacy to the regulator. Critically, the statistical protocol used to establish efficacy affects …

abstract agent arxiv cs.gt cs.lg cs.ma drugs hypothesis math.st pharmaceutical profit regulator relationship stat.me stat.th testing type