The paper investigates why large language models (LLMs) struggle in strategic decision-making under incomplete information. It identifies two key gaps: an observation‑belief gap where LLMs’ internal representations of game states are accurate but brittle, and a belief‑action gap where converting these internal beliefs into actions is weak, leading to suboptimal payoffs. Experiments with Llama 3.1, Qwen3, and gpt‑oss confirm that acting optimally on decoded beliefs would improve outcomes in most games, highlighting a bottleneck in belief‑to‑action conversion.
By Jan Sobotka, Mustafa O. Karabag, Ufuk Topcu
The study examines how Theory of Mind (ToM) reasoning and prosocial beliefs influence large language models (LLMs) in the ultimatum game. By initializing LLM agents with Greedy, Fair, or Selfless beliefs and applying chain‑of‑thought or varying levels of ToM reasoning, the authors ran 2,700 simulations across several models, including o3‑mini and DeepSeek‑R1 Distilled Qwen 32B. Results show that ToM‑enhanced LLMs align more closely with human decision patterns, exhibit greater consistency, and achieve better negotiation outcomes, with Llama 3.3 70B producing the most belief‑consistent reasoning.
whyItMatters":"The findings clarify the importance of incorporating Theory of Mind into LLMs to improve their alignment with human norms in cooperative decision‑making tasks."
By Neemesh Yadav, Yihuai Lan, Shan Dong, Mai Hieu Hien, Palakorn Achananuparp, Jing Jiang, Ee-Peng Lim
arXiv:2606. 27909v1 Announce Type: cross Abstract: Theory-of-mind evaluations of large language models typically use dyadic social-deduction games, where every observable cue points to a single hidden side, so a model with strong language priors can score well without ever simulating opponents' incentives.
By Avni Mittal
Agentic systems increasingly gate actions on a model's own stated confidence, which assumes confidence tracks correctness at the moment of acting. We test this in a hidden-information chess variant wh...
arXiv:2606. 27806v1 Announce Type: new Abstract: World models for language agents come in two useful forms.
By Xinyuan Song, Zekun Cai
arXiv:2606. 07552v1 Announce Type: cross Abstract: Large language models exhibit innate behavioral tendencies when deployed as strategic agents -- notably a risk-averse "turtle" bias toward defensive play.
By Augustin Chan