# Towards an Understanding of Stepwise Inference in Transformers: A Synthetic Graph Navigation Model

arXiv: https://arxiv.org/abs/2402.07757 · HTML: https://mlsanity.com/paper/2402.07757/

## Key facts

- Cited by 9 papers in the map (data through 14 Oct 2026).
- Placed in Prompting and chain-of-thought reasoning, one of 17 directions in LLM reasoning.
- Builds on 37 of its 49 references that are in the map.
- First posted on arXiv 12 Feb 2024.

## Placed in

- LLM reasoning / [Prompting and chain-of-thought reasoning](https://mlsanity.com/lr/prompting-and-chain-of-thought-reasoning/)

## Builds on (most cited first, 30 of 37)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [LLaMA: Open and Efficient Foundation Language Models](https://mlsanity.com/paper/2302.13971/) (2023)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Measuring Massive Multitask Language Understanding](https://mlsanity.com/paper/2009.03300/) (2020)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [Large Language Models are Zero-Shot Reasoners](https://mlsanity.com/paper/2205.11916/) (2022)
- [Gaussian Error Linear Units (GELUs)](https://mlsanity.com/paper/1606.08415/) (2016)
- [Lost in the Middle: How Language Models Use Long Contexts](https://mlsanity.com/paper/2307.03172/) (2023)
- [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)
- [Beyond the Imitation Game: Quantifying and extrapolating the capabilities of language models](https://mlsanity.com/paper/2206.04615/) (2022)
- [Challenging BIG-Bench Tasks and Whether Chain-of-Thought Can Solve Them](https://mlsanity.com/paper/2210.09261/) (2022)
- [Fantastically Ordered Prompts and Where to Find Them: Overcoming Few-Shot Prompt Order Sensitivity](https://mlsanity.com/paper/2104.08786/) (2021)
- [Language Models Don't Always Say What They Think: Unfaithful Explanations in Chain-of-Thought Prompting](https://mlsanity.com/paper/2305.04388/) (2023)
- [Program of Thoughts Prompting: Disentangling Computation from Reasoning for Numerical Reasoning Tasks](https://mlsanity.com/paper/2211.12588/) (2022)
- [Measuring and Narrowing the Compositionality Gap in Language Models](https://mlsanity.com/paper/2210.03350/) (2022)
- [Show Your Work: Scratchpads for Intermediate Computation with Language Models](https://mlsanity.com/paper/2112.00114/) (2021)
- [Graph of Thoughts: Solving Elaborate Problems with Large Language Models](https://mlsanity.com/paper/2308.09687/) (2023)
- [Reasoning with Language Model is Planning with World Model](https://mlsanity.com/paper/2305.14992/) (2023)
- [Towards Reasoning in Large Language Models: A Survey](https://mlsanity.com/paper/2212.10403/) (2022)
- [MedMCQA : A Large-scale Multi-Subject Multi-Choice Dataset for Medical domain Question Answering](https://mlsanity.com/paper/2203.14371/) (2022)
- [Faith and Fate: Limits of Transformers on Compositionality](https://mlsanity.com/paper/2305.18654/) (2023)
- [The Pitfalls of Simplicity Bias in Neural Networks](https://mlsanity.com/paper/2006.07710/) (2020)
- [Language Models Are Greedy Reasoners: A Systematic Formal Analysis of Chain-of-Thought](https://mlsanity.com/paper/2210.01240/) (2022)
- [Selection-Inference: Exploiting Large Language Models for Interpretable Logical Reasoning](https://mlsanity.com/paper/2205.09712/) (2022)
- [Towards Revealing the Mystery behind Chain of Thought: A Theoretical Perspective](https://mlsanity.com/paper/2305.15408/) (2023)
- [Using the Output Embedding to Improve Language Models](https://mlsanity.com/paper/1608.05859/) (2016)
- [Transformers Learn Shortcuts to Automata](https://mlsanity.com/paper/2210.10749/) (2022)
- [Towards Understanding Chain-of-Thought Prompting: An Empirical Study of What Matters](https://mlsanity.com/paper/2212.10001/) (2022)
- [Impact of Pretraining Term Frequencies on Few-Shot Reasoning](https://mlsanity.com/paper/2202.07206/) (2022)

## Built on by (most cited first, 9 of 9)

- [ICLR: In-Context Learning of Representations](https://mlsanity.com/paper/2501.00070/) (2024)
- [Roll the dice & look before you leap: Going beyond the creative limits of next-token prediction](https://mlsanity.com/paper/2504.15266/) (2025)
- [Masked Thought: Simply Masking Partial Reasoning Steps Can Improve Mathematical Reasoning Learning of Language Models](https://mlsanity.com/paper/2403.02178/) (2024)
- [Representation Shattering in Transformers: A Synthetic Study with Knowledge Editing](https://mlsanity.com/paper/2410.17194/) (2024)
- [On the origin of neural scaling laws: from random graphs to natural language](https://mlsanity.com/paper/2601.10684/) (2026)
- [Swing-by Dynamics in Concept Learning and Compositional Generalization](https://mlsanity.com/paper/2410.08309/) (2024)
- [Provable Benefits of RLVR over SFT for Reasoning Models: Learning to Backtrack Efficiently](https://mlsanity.com/paper/2606.22938/) (2026)
- [When Do Hallucinations Arise? A Graph Perspective on the Evolution of Path Reuse and Path Compression](https://mlsanity.com/paper/2604.03557/) (2026)
- [Shortcut Solutions Learned by Transformers Impair Continual Compositional Reasoning](https://mlsanity.com/paper/2605.05495/) (2026)

## Abstract (arXiv)

Stepwise inference protocols, such as scratchpads and chain-of-thought, help language models solve complex problems by decomposing them into a sequence of simpler subproblems. Despite the significant gain in performance achieved via these protocols, the underlying mechanisms of stepwise inference have remained elusive. To address this, we propose to study autoregressive Transformer models on a synthetic task that embodies the multi-step nature of problems where stepwise inference is generally most useful. Specifically, we define a graph navigation problem wherein a model is tasked with traversing a path from a start to a goal node on the graph. Despite is simplicity, we find we can empirically reproduce and analyze several phenomena observed at scale: (i) the stepwise inference reasoning gap, the cause of which we find in the structure of the training data; (ii) a diversity-accuracy tradeoff in model generations as sampling temperature varies; (iii) a simplicity bias in the model's output; and (iv) compositional generalization and a primacy bias with in-context exemplars. Overall, our work introduces a grounded, synthetic framework for studying stepwise inference and offers mechanistic hypotheses that can lay the foundation for a deeper understanding of this phenomenon.