arXiv AI By Runze Zhang, Xiaowei Zhang, Mingyang Zhao

Predicting Effects, Missing Distributions: Evaluating LLMs as Human Behavior Simulators in Operations Management

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arXiv:2510. 03310v2 Announce Type: replace-cross Abstract: Large language models (LLMs) are increasingly used to simulate human behavior in business, economics, and the social sciences, offering a low-cost complement to laboratory experiments, field studies, and surveys.

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arXiv Machine Learning
Sep 14

Aligning Language Models with Observational Data: Opportunities and Risks from a Causal Perspective

The paper discusses how large language models (LLMs) can be fine‑tuned with observational data to improve alignment with human preferences and business goals. It highlights that directly using such data can cause models to learn spurious correlations, and introduces DeconfoundLM, a method that removes known confounders from reward signals. Experiments show that DeconfoundLM better recovers causal relationships and outperforms baseline methods by over 16% in objective score when confounding is present.

By Erfan Loghmani