# CompeteAI: Understanding the Competition Dynamics in Large Language Model-based Agents

arXiv: https://arxiv.org/abs/2310.17512 · HTML: https://mlsanity.com/paper/2310.17512/

## Key facts

- Cited by 65 papers in the map (data through 14 Oct 2026).
- Placed in Social simulation and multi-agent debate, one of 16 directions in LLM agents and tool use.
- Builds on 14 of its 46 references that are in the map.
- First posted on arXiv 26 Oct 2023.

## Placed in

- LLM agents and tool use / [Social simulation and multi-agent debate](https://mlsanity.com/agents/social-simulation-and-multi-agent-debate/)

## Builds on (most cited first, 14 of 14)

- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [The Rise and Potential of Large Language Model Based Agents: A Survey](https://mlsanity.com/paper/2309.07864/) (2023)
- [GLM-130B: An Open Bilingual Pre-trained Model](https://mlsanity.com/paper/2210.02414/) (2022)
- [Out of One, Many: Using Language Models to Simulate Human Samples](https://mlsanity.com/paper/2209.06899/) (2022)
- [Can Large Language Models Transform Computational Social Science?](https://mlsanity.com/paper/2305.03514/) (2023)
- [S3: Social-network Simulation System with Large Language Model-Empowered Agents](https://mlsanity.com/paper/2307.14984/) (2023)
- [Exploring Collaboration Mechanisms for LLM Agents: A Social Psychology View](https://mlsanity.com/paper/2310.02124/) (2023)
- [Playing repeated games with Large Language Models](https://mlsanity.com/paper/2305.16867/) (2023)
- [Open Problems in Cooperative AI](https://mlsanity.com/paper/2012.08630/) (2020)
- [EconAgent: Large Language Model-Empowered Agents for Simulating Macroeconomic Activities](https://mlsanity.com/paper/2310.10436/) (2023)
- [Cooperation, Competition, and Maliciousness: LLM-Stakeholders Interactive Negotiation](https://mlsanity.com/paper/2309.17234/) (2023)
- [Put Your Money Where Your Mouth Is: Evaluating Strategic Planning and Execution of LLM Agents in an Auction Arena](https://mlsanity.com/paper/2310.05746/) (2023)
- [Simulating Social Media Using Large Language Models to Evaluate Alternative News Feed Algorithms](https://mlsanity.com/paper/2310.05984/) (2023)
- [The Challenge of Value Alignment: from Fairer Algorithms to AI Safety](https://mlsanity.com/paper/2101.06060/) (2021)

## Built on by (most cited first, 30 of 65)

- [Multi-Agent Collaboration Mechanisms: A Survey of LLMs](https://mlsanity.com/paper/2501.06322/) (2025)
- [Large Language Model Agent: A Survey on Methodology, Applications and Challenges](https://mlsanity.com/paper/2503.21460/) (2025)
- [From Individual to Society: A Survey on Social Simulation Driven by Large Language Model-based Agents](https://mlsanity.com/paper/2412.03563/) (2024)
- [A Survey on LLM-based Multi-Agent System: Recent Advances and New Frontiers in Application](https://mlsanity.com/paper/2412.17481/) (2024)
- [Project Sid: Many-agent simulations toward AI civilization](https://mlsanity.com/paper/2411.00114/) (2024)
- [Do LLM Agents Have Regret? A Case Study in Online Learning and Games](https://mlsanity.com/paper/2403.16843/) (2024)
- [PersonaX: A Recommendation Agent Oriented User Modeling Framework for Long Behavior Sequence](https://mlsanity.com/paper/2503.02398/) (2025)
- [Cultural Evolution of Cooperation among LLM Agents](https://mlsanity.com/paper/2412.10270/) (2024)
- [From Language to Action: A Review of Large Language Models as Autonomous Agents and Tool Users](https://mlsanity.com/paper/2508.17281/) (2025)
- [When One LLM Drools, Multi-LLM Collaboration Rules](https://mlsanity.com/paper/2502.04506/) (2025)
- [Model Swarms: Collaborative Search to Adapt LLM Experts via Swarm Intelligence](https://mlsanity.com/paper/2410.11163/) (2024)
- [A Survey on Large Language Model-Based Social Agents in Game-Theoretic Scenarios](https://mlsanity.com/paper/2412.03920/) (2024)
- [Heterogeneous Swarms: Jointly Optimizing Model Roles and Weights for Multi-LLM Systems](https://mlsanity.com/paper/2502.04510/) (2025)
- [K-Level Reasoning: Establishing Higher Order Beliefs in Large Language Models for Strategic Reasoning](https://mlsanity.com/paper/2402.01521/) (2024)
- [The Coming Crisis of Multi-Agent Misalignment: AI Alignment Must Be a Dynamic and Social Process](https://mlsanity.com/paper/2506.01080/) (2025)
- [GLEE: A Unified Framework and Benchmark for Language-based Economic Environments](https://mlsanity.com/paper/2410.05254/) (2024)
- [Learning to Deliberate: Meta-policy Collaboration for Agentic LLMs with Multi-agent Reinforcement Learning](https://mlsanity.com/paper/2509.03817/) (2025)
- [A Survey on Human-Centric LLMs](https://mlsanity.com/paper/2411.14491/) (2024)
- [A Human-Like Reasoning Framework for Multi-Phases Planning Task with Large Language Models](https://mlsanity.com/paper/2405.18208/) (2024)
- [Can LLM-Augmented autonomous agents cooperate?, An evaluation of their cooperative capabilities through Melting Pot](https://mlsanity.com/paper/2403.11381/) (2024)
- [Are LLMs Socially Adaptive? Contrasting Belief Evolution in Large Language Models and Humans](https://mlsanity.com/paper/2410.10398/) (2024)
- [Can Generative AI agents behave like humans? Evidence from laboratory market experiments](https://mlsanity.com/paper/2505.07457/) (2025)
- [Beyond Static Responses: Multi-Agent LLM Systems as a New Paradigm for Social Science Research](https://mlsanity.com/paper/2506.01839/) (2025)
- [Don't Throw Away Your Pretrained Model](https://mlsanity.com/paper/2510.09913/) (2025)
- [Token-Level LLM Collaboration via FusionRoute](https://mlsanity.com/paper/2601.05106/) (2026)
- [Long Context Scaling: Divide and Conquer via Multi-Agent Question-driven Collaboration](https://mlsanity.com/paper/2505.20625/) (2025)
- [HARBOR: Exploring Persona Dynamics in Multi-Agent Competition](https://mlsanity.com/paper/2502.12149/) (2025)
- [AI Agent Behavioral Science](https://mlsanity.com/paper/2506.06366/) (2025)
- [Enhancing Language Model Rationality with Bi-Directional Deliberation Reasoning](https://mlsanity.com/paper/2407.06112/) (2024)
- [CreDes: Causal Reasoning Enhancement and Dual-End Searching for Solving Long-Range Reasoning Problems using LLMs](https://mlsanity.com/paper/2410.01696/) (2024)

## Abstract (arXiv)

Large language models (LLMs) have been widely used as agents to complete different tasks, such as personal assistance or event planning. While most of the work has focused on cooperation and collaboration between agents, little work explores competition, another important mechanism that promotes the development of society and economy. In this paper, we seek to examine the competition dynamics in LLM-based agents. We first propose a general framework for studying the competition between agents. Then, we implement a practical competitive environment using GPT-4 to simulate a virtual town with two types of agents, restaurant agents and customer agents. Specifically, the restaurant agents compete with each other to attract more customers, where competition encourages them to transform, such as cultivating new operating strategies. Simulation experiments reveal several interesting findings at the micro and macro levels, which align well with existing market and sociological theories. We hope that the framework and environment can be a promising testbed to study competition that fosters understanding of society. Code is available at: https://github.com/microsoft/competeai.