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Test-time compute has emerged as a promising strategy to enhance the reasoning abilities of large language models (LLMs). However, this strategy has in turn increased how much users pay cloud-based providers offering LLM-as-a-service, since…

State-of-the-art large language models require specialized hardware and substantial energy to operate. As a consequence, cloud-based services that provide access to large language models have become very popular. In these services, the…

Within the domain of Massively Multiplayer Online (MMO) economy research, Agent-Based Modeling (ABM) has emerged as a robust tool for analyzing game economics, evolving from rule-based agents to decision-making agents enhanced by…

Commercial Large Language Model (LLM) APIs create a fundamental trust problem: users pay for specific models but have no guarantee that providers deliver them faithfully. Providers may covertly substitute cheaper alternatives (e.g.,…

As large language models (LLMs) increasingly act as autonomous agents in markets and organizations, their behavior in strategic environments becomes economically consequential. We document that off-the-shelf LLM agents exhibit systematic…

Large language model (LLM) services have recently begun offering a plugin ecosystem to interact with third-party API services. This innovation enhances the capabilities of LLMs, but it also introduces risks, as these plugins developed by…

As AI agents increasingly act on behalf of human stakeholders in economic settings, understanding their behavior in complex market environments becomes critical. This article examines how Large Language Models coordinate on markets that are…

Large language models (LLMs) have been extensively used as the backbones for general-purpose agents, and some economics literature suggest that LLMs are capable of playing various types of economics games. Following these works, to overcome…

As LLMs become more widely deployed, there is increasing interest in directly optimizing for feedback from end users (e.g. thumbs up) in addition to feedback from paid annotators. However, training to maximize human feedback creates a…

Game theory has long served as a foundational tool in cybersecurity to test, predict, and design strategic interactions between attackers and defenders. The recent advent of Large Language Models (LLMs) offers new tools and challenges for…

While the success of large language models (LLMs) increases demand for machine-generated text, current pay-per-token pricing schemes create a misalignment of incentives known in economics as moral hazard: Text-generating agents have strong…

Recent advances in instruction-following large language models (LLMs) have led to dramatic improvements in a range of NLP tasks. Unfortunately, we find that the same improved capabilities amplify the dual-use risks for malicious purposes of…

Large Language Models (LLMs) have emerged as formidable instruments capable of comprehending and producing human-like text. This paper explores the potential of LLMs, to shape user perspectives and subsequently influence their decisions on…

Collaborative learning techniques have the potential to enable training machine learning models that are superior to models trained on a single entity's data. However, in many cases, potential participants in such collaborative schemes are…

While artificial intelligence (AI) technology is becoming increasingly popular, its underlying mechanisms tend to remain opaque to most people. To address this gap, the field of AI literacy aims to develop various resources to teach people…

We conduct experiments with algorithmic pricing agents based on Large Language Models (LLMs). In oligopoly settings, LLM-based pricing agents quickly and autonomously reach supracompetitive prices and profits. Variation in seemingly…

Large language models (LLMs) are currently at the forefront of intertwining artificial intelligence (AI) systems with human communication and everyday life. Thus, aligning them with human values is of great importance. However, given the…

Large Language Models' (LLMs) programming capabilities enable their participation in open-source games: a game-theoretic setting in which players submit computer programs in lieu of actions. These programs offer numerous advantages,…

Countless terms of service (ToS) are being signed everyday by users all over the world while interacting with all kinds of apps and websites. More often than not, these online contracts spanning double-digit pages are signed blindly by…

We present a strategic analysis of a trust model that has recently been proposed for promoting cooperative behaviour in user-centric networks. The mechanism for cooperation is based on a combination of reputation and virtual currency…