# Put Your Money Where Your Mouth Is: Evaluating Strategic Planning and Execution of LLM Agents in an Auction Arena

arXiv: https://arxiv.org/abs/2310.05746 · HTML: https://mlsanity.com/paper/2310.05746/

## Key facts

- Cited by 78 papers in the map (data through 14 Oct 2026).
- Placed in Reasoning for agents, planning and code, one of 17 directions in LLM reasoning.
- Builds on 43 of its 95 references that are in the map.
- First posted on arXiv 9 Oct 2023.

## Placed in

- LLM reasoning / [Reasoning for agents, planning and code](https://mlsanity.com/lr/reasoning-for-agents-planning-and-code/)
- LLM agents and tool use / [Financial trading and forecasting agents](https://mlsanity.com/agents/financial-trading-and-forecasting-agents/)

## Builds on (most cited first, 30 of 43)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [GPT-4 Technical Report](https://mlsanity.com/paper/2303.08774/) (2023)
- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [GLUE: A Multi-Task Benchmark and Analysis Platform for Natural Language Understanding](https://mlsanity.com/paper/1804.07461/) (2018)
- [Large Language Models are Zero-Shot Reasoners](https://mlsanity.com/paper/2205.11916/) (2022)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Finetuned Language Models Are Zero-Shot Learners](https://mlsanity.com/paper/2109.01652/) (2021)
- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [Playing Atari with Deep Reinforcement Learning](https://mlsanity.com/paper/1312.5602/) (2013)
- [Tree of Thoughts: Deliberate Problem Solving with Large Language Models](https://mlsanity.com/paper/2305.10601/) (2023)
- [Sparks of Artificial General Intelligence: Early experiments with GPT-4](https://mlsanity.com/paper/2303.12712/) (2023)
- [Emergent Abilities of Large Language Models](https://mlsanity.com/paper/2206.07682/) (2022)
- [Do As I Can, Not As I Say: Grounding Language in Robotic Affordances](https://mlsanity.com/paper/2204.01691/) (2022)
- [A Survey on Large Language Model based Autonomous Agents](https://mlsanity.com/paper/2308.11432/) (2023)
- [Voyager: An Open-Ended Embodied Agent with Large Language Models](https://mlsanity.com/paper/2305.16291/) (2023)
- [WebArena: A Realistic Web Environment for Building Autonomous Agents](https://mlsanity.com/paper/2307.13854/) (2023)
- [SuperGLUE: A Stickier Benchmark for General-Purpose Language Understanding Systems](https://mlsanity.com/paper/1905.00537/) (2019)
- [The Rise and Potential of Large Language Model Based Agents: A Survey](https://mlsanity.com/paper/2309.07864/) (2023)
- [AgentBench: Evaluating LLMs as Agents](https://mlsanity.com/paper/2308.03688/) (2023)
- [WebShop: Towards Scalable Real-World Web Interaction with Grounded Language Agents](https://mlsanity.com/paper/2207.01206/) (2022)
- [Mind2Web: Towards a Generalist Agent for the Web](https://mlsanity.com/paper/2306.06070/) (2023)
- [PaLM 2 Technical Report](https://mlsanity.com/paper/2305.10403/) (2023)
- [ExpeL: LLM Agents Are Experiential Learners](https://mlsanity.com/paper/2308.10144/) (2023)
- [Did Aristotle Use a Laptop? A Question Answering Benchmark with Implicit Reasoning Strategies](https://mlsanity.com/paper/2101.02235/) (2021)
- [AgentVerse: Facilitating Multi-Agent Collaboration and Exploring Emergent Behaviors](https://mlsanity.com/paper/2308.10848/) (2023)
- [Cognitive Architectures for Language Agents](https://mlsanity.com/paper/2309.02427/) (2023)
- [ScienceWorld: Is your Agent Smarter than a 5th Grader?](https://mlsanity.com/paper/2203.07540/) (2022)

## Built on by (most cited first, 30 of 78)

- [Large Language Models Empowered Agent-based Modeling and Simulation: A Survey and Perspectives](https://mlsanity.com/paper/2312.11970/) (2023)
- [From Persona to Personalization: A Survey on Role-Playing Language Agents](https://mlsanity.com/paper/2404.18231/) (2024)
- [EconAgent: Large Language Model-Empowered Agents for Simulating Macroeconomic Activities](https://mlsanity.com/paper/2310.10436/) (2023)
- [War and Peace (WarAgent): Large Language Model-based Multi-Agent Simulation of World Wars](https://mlsanity.com/paper/2311.17227/) (2023)
- [EvoAgent: Towards Automatic Multi-Agent Generation via Evolutionary Algorithms](https://mlsanity.com/paper/2406.14228/) (2024)
- [Agentic Large Language Models, a survey](https://mlsanity.com/paper/2503.23037/) (2025)
- [LLM as a Mastermind: A Survey of Strategic Reasoning with Large Language Models](https://mlsanity.com/paper/2404.01230/) (2024)
- [GameBench: Evaluating Strategic Reasoning Abilities of LLM Agents](https://mlsanity.com/paper/2406.06613/) (2024)
- [A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges](https://mlsanity.com/paper/2406.11903/) (2024)
- [PlanGenLLMs: A Modern Survey of LLM Planning Capabilities](https://mlsanity.com/paper/2502.11221/) (2025)
- [From Individual to Society: A Survey on Social Simulation Driven by Large Language Model-based Agents](https://mlsanity.com/paper/2412.03563/) (2024)
- [How Far Are We on the Decision-Making of LLMs? Evaluating LLMs' Gaming Ability in Multi-Agent Environments](https://mlsanity.com/paper/2403.11807/) (2024)
- [CompeteAI: Understanding the Competition Dynamics in Large Language Model-based Agents](https://mlsanity.com/paper/2310.17512/) (2023)
- [A Survey on LLM-based Multi-Agent System: Recent Advances and New Frontiers in Application](https://mlsanity.com/paper/2412.17481/) (2024)
- [Measuring Bargaining Abilities of LLMs: A Benchmark and A Buyer-Enhancement Method](https://mlsanity.com/paper/2402.15813/) (2024)
- [MegaAgent: A Large-Scale Autonomous LLM-based Multi-Agent System Without Predefined SOPs](https://mlsanity.com/paper/2408.09955/) (2024)
- [Large Language Models for Planning: A Comprehensive and Systematic Survey](https://mlsanity.com/paper/2505.19683/) (2025)
- [Cocoa: Co-Planning and Co-Execution with AI Agents](https://mlsanity.com/paper/2412.10999/) (2024)
- [LLMArena: Assessing Capabilities of Large Language Models in Dynamic Multi-Agent Environments](https://mlsanity.com/paper/2402.16499/) (2024)
- [Agent Design Pattern Catalogue: A Collection of Architectural Patterns for Foundation Model based Agents](https://mlsanity.com/paper/2405.10467/) (2024)
- [ALYMPICS: LLM Agents Meet Game Theory -- Exploring Strategic Decision-Making with AI Agents](https://mlsanity.com/paper/2311.03220/) (2023)
- [CostBench: Evaluating Multi-Turn Cost-Optimal Planning and Adaptation in Dynamic Environments for LLM Tool-Use Agents](https://mlsanity.com/paper/2511.02734/) (2025)
- [When AI Meets Finance (StockAgent): Large Language Model-based Stock Trading in Simulated Real-world Environments](https://mlsanity.com/paper/2407.18957/) (2024)
- [SPIN-Bench: How Well Do LLMs Plan Strategically and Reason Socially?](https://mlsanity.com/paper/2503.12349/) (2025)
- [TimeArena: Shaping Efficient Multitasking Language Agents in a Time-Aware Simulation](https://mlsanity.com/paper/2402.05733/) (2024)
- [A Survey on Large Language Model-Based Social Agents in Game-Theoretic Scenarios](https://mlsanity.com/paper/2412.03920/) (2024)
- [SelfGoal: Your Language Agents Already Know How to Achieve High-level Goals](https://mlsanity.com/paper/2406.04784/) (2024)
- [Magentic Marketplace: An Open-Source Environment for Studying Agentic Markets](https://mlsanity.com/paper/2510.25779/) (2025)
- [Game Theory Meets Large Language Models: A Systematic Survey with Taxonomy and New Frontiers](https://mlsanity.com/paper/2502.09053/) (2025)
- [SOTOPIA-Omega: Dynamic Strategy Injection Learning and Social Instruction Following Evaluation for Social Agents](https://mlsanity.com/paper/2502.15538/) (2025)

## Abstract (arXiv)

Recent advancements in Large Language Models (LLMs) showcase advanced reasoning, yet NLP evaluations often depend on static benchmarks. Evaluating this necessitates environments that test strategic reasoning in dynamic, competitive scenarios requiring long-term planning. We introduce AucArena, a novel evaluation suite that simulates auctions, a setting chosen for being highly unpredictable and involving many skills related to resource and risk management, while also being easy to evaluate. We conduct controlled experiments using state-of-the-art LLMs to power bidding agents to benchmark their planning and execution skills. Our research demonstrates that LLMs, such as GPT-4, possess key skills for auction participation, such as budget management and goal adherence, which improve with adaptive strategies. This highlights LLMs' potential in modeling complex social interactions in competitive contexts. However, variability in LLM performance and occasional outperformance by simpler methods indicate opportunities for further advancements in LLM design and the value of our simulation environment for ongoing testing and refinement.