TextBandit: Evaluating Probabilistic Reasoning in LLMs Through Language-Only Decision Tasks
On the map: LLM reasoning → Test-time compute and efficient thinking
Abstract (arXiv)
Large language models (LLMs) have shown to be increasingly capable of performing reasoning tasks, but their ability to make sequential decisions under uncertainty only using natural language remains underexplored. We introduce a novel benchmark in which LLMs interact with multi-armed bandit environments using purely textual feedback, "you earned a token", without access to numerical cues or explicit probabilities, resulting in the model to infer latent reward structures purely off linguistic cues and to adapt accordingly. We evaluated the performance of four open-source LLMs and compare their performance to standard decision-making algorithms such as Thompson Sampling, Epsilon Greedy, Upper Confidence Bound (UCB), and random choice. While most of the LLMs underperformed compared to the baselines, Qwen3-4B, achieved the best-arm selection rate of 89.2% , which significantly outperformed both the larger LLMs and traditional methods. Our findings suggest that probabilistic reasoning is able to emerge from language alone, and we present this benchmark as a step towards evaluating decision-making capabilities in naturalistic, non-numeric contexts.
Key facts. Cited by 1 paper in the map (data through 14 Oct 2026). Placed in Test-time compute and efficient thinking, one of 17 directions in LLM reasoning. Builds on 7 of its 9 references that are in the map. First posted on arXiv 13 Oct 2025.
Builds on
7 of 9 references.
References · 7
- 2021An Explanation of In-context Learning as Implicit Bayesian Inferencecited by 938
- 2017A Tutorial on Thompson Samplingcited by 433
- 2019Bootstrapping Upper Confidence Boundcited by 36
- 2025Enough Coin Flips Can Make LLMs Act Bayesiancited by 22
- 2024Epsilon-Greedy Thompson Sampling to Bayesian Optimizationcited by 9
- 2024On the Importance of Uncertainty in Decision-Making with Large Language Modelscited by 9
- 2025Large Language Model-Enhanced Multi-Armed Banditscited by 7
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Citing papers per year: 2026: 1.
1 paper.
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Close in wording, no citation either way
- 2026Diagnosing and Improving Probabilistic Reasoning in Large Language Models
- 2026Likelihood-Based Reward Designs for General LLM Reasoning
- 2025Confidence as a Reward: Transforming LLMs into Reward Models
- 2026How reliable are LLMs when it comes to playing dice?
- 2025Reasoning Under Uncertainty: Exploring Probabilistic Reasoning Capabilities of LLMs
- 2025Explicit Reasoning Makes Better Judges: A Systematic Study on Accuracy, Efficiency, and Robustness
- 2026When Do We Need LLMs? A Diagnostic for Language-Driven Bandits
- 2025Enhancing Large Language Model Reasoning with Reward Models: An Analytical Survey