Reward Hacking as Equilibrium under Finite Evaluation
On the map: LLM alignment / RLHF / preference optimisation → Reward hacking and misspecification
Abstract (arXiv)
We prove that under five minimal axioms -- multi-dimensional quality, finite evaluation, effective optimization, resource finiteness, and combinatorial interaction -- any optimized AI agent will systematically under-invest effort in quality dimensions not covered by its evaluation system. This result establishes reward hacking as a structural equilibrium, not a correctable bug, and holds regardless of the specific alignment method (RLHF, DPO, Constitutional AI, or others) or evaluation architecture employed. Our framework instantiates the multi-task principal-agent model of Holmstrom and Milgrom (1991) in the AI alignment setting, but exploits a structural feature unique to AI systems -- the known, differentiable architecture of reward models -- to derive a computable distortion index that predicts both the direction and severity of hacking on each quality dimension prior to deployment. We further prove that the transition from closed reasoning to agentic systems causes evaluation coverage to decline toward zero as tool count grows -- because quality dimensions expand combinatorially while evaluation costs grow at most linearly per tool -- so that hacking severity increases structurally and without bound. Our results unify the explanation of sycophancy, length gaming, and specification gaming under a single theoretical structure and yield an actionable vulnerability assessment procedure. We further conjecture -- with partial formal analysis -- the existence of a capability threshold beyond which agents transition from gaming within the evaluation system (Goodhart regime) to actively degrading the evaluation system itself (Campbell regime), providing the first economic formalization of Bostrom's (2014) "treacherous turn."
Key facts. Cited by 3 papers in the map (data through 7 Oct 2026). Placed in Reward hacking and misspecification, one of 10 directions in LLM alignment / RLHF / preference optimisation. Builds on 5 of its 13 references that are in the map. First posted on arXiv 30 Mar 2026.
Builds on
5 of 13 references.
Closest ancestors · 1
Same direction, newest first
Other references · 4
- 2022Training language models to follow instructions with human feedbackcited by 15,712
- 2023Direct Preference Optimization: Your Language Model is Secretly a Reward Modelcited by 7,916
- 2022Constitutional AI: Harmlessness from AI Feedbackcited by 2,950
- 2022Discovering Language Model Behaviors with Model-Written Evaluationscited by 805
Built on by
Citing papers per year: 2026: 3.
3 papers.
Similar, not cited
Close in wording, no citation either way
- 2026Hack-Verifiable Environments: Towards Evaluating Reward Hacking at Scale
- 2026BAITBENCH: Measuring Agent Reward Hacking with Optional Shortcuts Planted in ML Tasks
- 2026Reward Hacking Benchmark: Measuring Exploits in LLM Agents with Tool Use
- 2022Defining and Characterizing Reward Hacking
- 2026Do Androids Dream of Breaking the Game? Systematically Auditing AI Agent Benchmarks with BenchJack
- 2026BenchShield: Formal Model-Backed Instrumentation for Reward Integrity in LLM-Agent Evaluation Infrastructure
- 2026Optimizing the Score, Losing Sight of the Task: Reward Hacking Across Weights, Selection, and Prompts
- 2026Revisiting scaling laws for reward optimization