What One Cannot, Two Can: Two-Layer Transformers Provably Represent Induction Heads on Any-Order Markov Chains
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Abstract (arXiv)
In-context learning (ICL) is a hallmark capability of transformers, through which trained models learn to adapt to new tasks by leveraging information from the input context. Prior work has shown that ICL emerges in transformers due to the presence of special circuits called induction heads. Given the equivalence between induction heads and conditional k-grams, a recent line of work modeling sequential inputs as Markov processes has revealed the fundamental impact of model depth on its ICL capabilities: while a two-layer transformer can efficiently represent a conditional 1-gram model, its single-layer counterpart cannot solve the task unless it is exponentially large. However, for higher order Markov sources, the best known constructions require at least three layers (each with a single attention head) - leaving open the question: can a two-layer single-head transformer represent any kth-order Markov process? In this paper, we precisely address this and theoretically show that a two-layer transformer with one head per layer can indeed represent any conditional k-gram. Thus, our result provides the tightest known characterization of the interplay between transformer depth and Markov order for ICL. Building on this, we further analyze the learning dynamics of our two-layer construction, focusing on a simplified variant for first-order Markov chains, illustrating how effective in-context representations emerge during training. Together, these results deepen our current understanding of transformer-based ICL and illustrate how even shallow architectures can surprisingly exhibit strong ICL capabilities on structured sequence modeling tasks.
Key facts. Cited by 5 papers in the map (data through 14 Oct 2026). First posted on arXiv 10 Aug 2025.
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Citing papers per year: 2025: 1; 2026: 4.
5 papers.
- 2025Predicting the Emergence of Induction Heads in Language Model Pretrainingcited by 7
- 2026Induction Heads Interpolate N-Gramscited by 1
- 2026Extracting Algorithms in Pre-trained LLMs: A Case on Hidden Markov Modelscited by 0
- 2026A Comparative Analysis of Attention versus State-Space Models for In-Context Learningcited by 0
- 2026Why Do Conventional World Models Fail to Learn Cellular Automata?cited by 0
- 2026Why Do Conventional World Models Fail to Learn Cellular Automata?30 Sep 2026
- 2026A Comparative Analysis of Attention versus State-Space Models for In-Context Learning26 Sep 2026
- 2026Induction Heads Interpolate N-Grams2 Jul 2026
- 2026Extracting Algorithms in Pre-trained LLMs: A Case on Hidden Markov Models24 Jun 2026
- 2025Predicting the Emergence of Induction Heads in Language Model Pretraining21 Nov 2025