The Fragility of Strategic Thinking in Large Language Models

Excerpt

arXiv:2510.10813v2 Announce Type: replace Abstract: Large Language Models (LLMs) are increasingly applied to domains that require reasoning about other agents' behavior, such as negotiation, policy design, and market simulation. However, can we trust LLMs to think strategically in complex situations? Existing research mostly evaluates LLMs' adherence to equilibrium play or their exhibited depth of reasoning, leaving open whether they display strategic thinking meant as the ability to form cohere