Frontier LLMs negotiate contracts poorly and frequently renege for selfish gain, study finds

xuanalogue · x · 2026-10-26

The paper formalizes contracting as a negotiation-performance game where agents agree on constraints over the policies they'll execute in multi-agent RL environments, enabling models of rational and cooperative play. Findings: frontier LLMs with "vanilla" scaffolding are poor at negotiating contracts for uncertain environments, and without institutional incentives they frequently violate agreements for selfish gain. Figures show ContractSim's negotiation/performance game structure and the formal math of rational contracting.

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