Large Model Strategic Thinking, Small Model Efficiency: Transferring Theory of Mind in Large Language Models
On the map: LLM reasoning → Reasoning for agents, planning and code
Abstract (arXiv)
As the performance of larger, newer Large Language Models continues to improve for strategic Theory of Mind (ToM) tasks, the demand for these state-of-the-art models increases commensurately. However, their deployment is costly both in terms of processing power and time. In this paper, we investigate the feasibility of creating smaller, highly-performing specialized algorithms by way of fine-tuning. To do this, we first present a large pre-trained model with 20 unique scenarios that combine different social contexts with games of varying social dilemmas, record its answers, and use them for Q&A fine-tuning on a smaller model of the same family. Our focus is on in-context game-theoretic decision-making, the same domain within which human interaction occurs and that requires both a theory of mind (or a semblance thereof) and an understanding of social dynamics. The smaller model is therefore trained not just on the answers provided, but also on the motivations provided by the larger model, which should contain advice and guidelines to navigate both strategic dilemmas and social cues. We find that the fine-tuned smaller language model consistently bridged the gap in performance between the smaller pre-trained version of the model and its larger relative and that its improvements extended in areas and contexts beyond the ones provided in the training examples, including on out-of-sample scenarios that include completely different game structures. On average for all games, through fine-tuning, the smaller model showed a 46% improvement measured as alignment towards the behavior of the larger model, with 100% representing indistinguishable behavior. When presented with out-of-sample social contexts and games, the fine-tuned model still displays remarkable levels of alignment, reaching an improvement of 18% and 28% respectively.
Key facts. Cited by 7 papers in the map (data through 7 Oct 2026). Placed in Reasoning for agents, planning and code, one of 17 directions in LLM reasoning. Builds on 26 of its 56 references that are in the map. First posted on arXiv 5 Aug 2024.
Builds on
26 of 56 references.
Closest ancestors · 2
Same direction, newest first
- 2024LLM as a Mastermind: A Survey of Strategic Reasoning with Large Language Models1 Apr
- 2024GTBench: Uncovering the Strategic Reasoning Limitations of LLMs via Game-Theoretic Evaluations19 Feb
Other references · 24
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- 2023Playing repeated games with Large Language Modelscited by 213
- 2023Evaluating the Logical Reasoning Ability of ChatGPT and GPT-4cited by 202
- 2023Embers of Autoregression: Understanding Large Language Models Through the Problem They are Trained to Solvecited by 175
- 2023Cooperation, Competition, and Maliciousness: LLM-Stakeholders Interactive Negotiationcited by 94
- 2024The rising costs of training frontier AI modelscited by 91
- 2024How Far Are We on the Decision-Making of LLMs? Evaluating LLMs' Gaming Ability in Multi-Agent Environmentscited by 66
- 2023Strategic Behavior of Large Language Models: Game Structure vs. Contextual Framingcited by 49
- 2024Fine-tuning Large Language Models for Domain-specific Machine Translationcited by 43
12 more
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- 2024Unveiling the Generalization Power of Fine-Tuned Large Language Modelscited by 35
- 2023ALYMPICS: LLM Agents Meet Game Theory -- Exploring Strategic Decision-Making with AI Agentscited by 33
- 2024Tag-LLM: Repurposing General-Purpose LLMs for Specialized Domainscited by 30
- 2024Small Language Models Learn Enhanced Reasoning Skills from Medical Textbookscited by 30
- 2024Fine Tuning LLM for Enterprise: Practical Guidelines and Recommendationscited by 28
- 2023The Machine Psychology of Cooperation: Can GPT models operationalise prompts for altruism, cooperation, competitiveness and selfishness in economic games?cited by 22
- 2023Balancing Specialized and General Skills in LLMs: The Impact of Modern Tuning and Data Strategycited by 18
- 2023Can Language Models Teach Weaker Agents? Teacher Explanations Improve Students via Personalizationcited by 15
- 2023Assessing Large Language Models' ability to predict how humans balance self-interest and the interest of otherscited by 4
- 2023Human-Like Intuitive Behavior and Reasoning Biases Emerged in Language Models -- and Disappeared in GPT-4cited by 2
- 2024The Reasoning Under Uncertainty Trap: A Structural AI Riskcited by 2
Built on by
Citing papers per year: 2025: 4; 2026: 3.
7 papers.
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- 2026Communication Enhances LLMs' Stability in Strategic Thinkingcited by 1
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- 2026Strategy, Not Payoffs: A Behavioural Embedding of Normal-Form Games30 Jul 2026
- 2026Heterogeneous Debate Engine: Identity-Grounded Cognitive Architecture for Resilient LLM-Based Ethical Tutoring28 Mar 2026
- 2026Communication Enhances LLMs' Stability in Strategic Thinking4 Feb 2026
- 2025From Black Boxes to Transparent Minds: Evaluating and Enhancing the Theory of Mind in Multimodal Large Language Models17 Jun 2025
- 2025UniToMBench: Integrating Perspective-Taking to Improve Theory of Mind in LLMs11 Jun 2025
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- 2025Interpretable Risk Mitigation in LLM Agent Systems15 May 2025
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