New paper: LLM-based simulators for policy design must generalize beyond frozen in-distribution data

soumitrashukla9 · x · 2026-11-05

A new paper by KehangZhu argues LLM simulation is only useful for market and policy design if it holds up after the rules change. Most evaluations stay in-distribution: the authors select what the simulator sees from past experiments, freeze it, and test on new people under new rules/designs to measure out-of-distribution generalization.

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