titleProbing Outcome-Level Resemblance and Mechanism-Level Alignment in LLM Risk Decisions: Evidence from the St. Petersburg Game
authorsChensong Huang, Changyu Chen, Chenwei Lin, Hanjia Lyu, Xian Xu, Jiebo Luo
date2026-06-03
venuearXiv (preprint, not peer reviewed)
idarXiv:2606.04978
upvotes1 (Hugging Face Daily Papers, 2026-11-01)
linksabs pdf hf
abstractLLMs can appear cautious in risk decision-making tasks, yet cautious-looking outputs do not necessarily indicate alignment with human decision-making mechanisms. We investigate this distinction using the St. Petersburg game as a controlled testbed, a classical paradox in which the expected payoff is infinite, yet humans typically report low, finite willingness to pay. We evaluate 28 LLMs with a structured prompt suite that includes the original game; controlled decision variants that perturb truncation, repeated play, numeric endowment, and occupational identity; a human-perspective prompt that asks models to reason as human decision makers; and paired comparisons between base models and their instruction-tuned counterparts. In the original game, most models generate finite bids, creating the appearance of human-like risk behavior. However, this outcome-level resemblance masks substantial mechanism-level differences. The controlled variants reveal that rather than maintaining human-like behavior seen in the original game, models often shift to conditionally and computationally rational behavior. Human-cue prompting and instruction tuning often lower bids and reduce some visible pathologies, but most mechanism-level response patterns remain largely unchanged. These findings show that behavioral alignment in risk decision-making can be surface-level: LLMs may produce human-like risk decisions without exhibiting human-consistent mechanisms. High-stakes evaluations of LLM decision-making should therefore move beyond outcome similarity and examine whether the alignment is supported by mechanism-level consistency.

cite

@misc{huang2026probing,
  title={Probing Outcome-Level Resemblance and Mechanism-Level Alignment in LLM Risk Decisions: Evidence from the St. Petersburg Game},
  author={Chensong Huang and Changyu Chen and Chenwei Lin and Hanjia Lyu and Xian Xu and Jiebo Luo},
  year={2026},
  eprint={2606.04978},
  archivePrefix={arXiv},
  url={https://arxiv.org/abs/2606.04978}
}