arXiv AI By Kaiser Sun, Yongchan Kwon, Zain Hasan, Shang Zhu, Kaitlyn Zhou, Federico Bianchi

What Effort Level Should I Choose? On the Economics of Reasoning Effort in LLM Agents

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The paper investigates how users should set the reasoning‑effort level in large language models, a parameter that trades off inference cost for potential performance gains. Experiments on proprietary and open‑weight models across four benchmarks show that higher effort does not consistently improve accuracy, can be up to 42× more expensive on easy tasks, and alters agent behavior by increasing verification and search steps. The authors propose a simple escalation strategy—starting at the lowest effort and only increasing after a verified failure—that matches or outperforms fixed high‑effort settings while reducing cost.

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arXiv AI
Oct 21

PORA: Learning When More Reasoning Pays Off for LLM Agents

The paper introduces PORA, a method that teaches large language model agents to decide when to allocate more reasoning steps versus fewer, based on the expected downstream benefit. PORA trains by running each state twice—once with short reasoning and once with long reasoning—and learns to predict the value of extended reasoning. During inference, a controller uses this prediction and remaining budget information to choose the appropriate reasoning length without running both options, improving performance across diverse tasks.

By Bo Yan, Qi Zhang, Zhen Tan, Tianlong Chen, Song Wang