# Thinking Economically: A Hierarchical Framework for Adaptive-Complexity Reasoning in LLMs

arXiv: https://arxiv.org/abs/2606.01168 · HTML: https://mlsanity.com/paper/2606.01168/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Test-time compute and efficient thinking, one of 17 directions in LLM reasoning.
- Builds on 31 of its 51 references that are in the map.
- First posted on arXiv 31 May 2026.

## Placed in

- LLM reasoning / [Test-time compute and efficient thinking](https://mlsanity.com/lr/test-time-compute-and-efficient-thinking/)

## Builds on (most cited first, 30 of 31)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Training Verifiers to Solve Math Word Problems](https://mlsanity.com/paper/2110.14168/) (2021)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [Measuring Mathematical Problem Solving With the MATH Dataset](https://mlsanity.com/paper/2103.03874/) (2021)
- [Least-to-Most Prompting Enables Complex Reasoning in Large Language Models](https://mlsanity.com/paper/2205.10625/) (2022)
- [Kimi k1.5: Scaling Reinforcement Learning with LLMs](https://mlsanity.com/paper/2501.12599/) (2025)
- [Training Large Language Models to Reason in a Continuous Latent Space](https://mlsanity.com/paper/2412.06769/) (2024)
- [Do NOT Think That Much for 2+3=? On the Overthinking of o1-Like LLMs](https://mlsanity.com/paper/2412.21187/) (2024)
- [Stop Overthinking: A Survey on Efficient Reasoning for Large Language Models](https://mlsanity.com/paper/2503.16419/) (2025)
- [Demystifying Long Chain-of-Thought Reasoning in LLMs](https://mlsanity.com/paper/2502.03373/) (2025)
- [Chain of Draft: Thinking Faster by Writing Less](https://mlsanity.com/paper/2502.18600/) (2025)
- [O1-Pruner: Length-Harmonizing Fine-Tuning for O1-Like Reasoning Pruning](https://mlsanity.com/paper/2501.12570/) (2025)
- [TokenSkip: Controllable Chain-of-Thought Compression in LLMs](https://mlsanity.com/paper/2502.12067/) (2025)
- [CODI: Compressing Chain-of-Thought into Continuous Space via Self-Distillation](https://mlsanity.com/paper/2502.21074/) (2025)
- [Compressed Chain of Thought: Efficient Reasoning Through Dense Representations](https://mlsanity.com/paper/2412.13171/) (2024)
- [Multimodal Chain-of-Thought Reasoning: A Comprehensive Survey](https://mlsanity.com/paper/2503.12605/) (2025)
- [DAST: Difficulty-Adaptive Slow-Thinking for Large Reasoning Models](https://mlsanity.com/paper/2503.04472/) (2025)
- [Soft Thinking: Unlocking the Reasoning Potential of LLMs in Continuous Concept Space](https://mlsanity.com/paper/2505.15778/) (2025)
- [SoftCoT: Soft Chain-of-Thought for Efficient Reasoning with LLMs](https://mlsanity.com/paper/2502.12134/) (2025)
- [Sketch-of-Thought: Efficient LLM Reasoning with Adaptive Cognitive-Inspired Sketching](https://mlsanity.com/paper/2503.05179/) (2025)
- [Skeleton-of-Thought: Prompting LLMs for Efficient Parallel Generation](https://mlsanity.com/paper/2307.15337/) (2023)
- [LightThinker: Thinking Step-by-Step Compression](https://mlsanity.com/paper/2502.15589/) (2025)
- [Self-Training Elicits Concise Reasoning in Large Language Models](https://mlsanity.com/paper/2502.20122/) (2025)
- [How Well do LLMs Compress Their Own Chain-of-Thought? A Token Complexity Approach](https://mlsanity.com/paper/2503.01141/) (2025)
- [LogiQA: A Challenge Dataset for Machine Reading Comprehension with Logical Reasoning](https://mlsanity.com/paper/2007.08124/) (2020)
- [Sampling-Efficient Test-Time Scaling: Self-Estimating the Best-of-N Sampling in Early Decoding](https://mlsanity.com/paper/2503.01422/) (2025)
- [Can Language Models Learn to Skip Steps?](https://mlsanity.com/paper/2411.01855/) (2024)
- [Pareto Probing: Trading Off Accuracy for Complexity](https://mlsanity.com/paper/2010.02180/) (2020)
- [Stepwise Perplexity-Guided Refinement for Efficient Chain-of-Thought Reasoning in Large Language Models](https://mlsanity.com/paper/2502.13260/) (2025)
- [System-2 Mathematical Reasoning via Enriched Instruction Tuning](https://mlsanity.com/paper/2412.16964/) (2024)

## Abstract (arXiv)

Chain-of-Thought (CoT) has significantly enhanced LLM reasoning, yet often incurs substantial computational overhead due to "overthinking": generating excessively long rationales without commensurate accuracy gains. Existing efficiency methods typically apply uniform compression, which overlooks a critical observation that reasoning complexity is heterogeneous at two distinct granularity: across different problems and within individual reasoning steps. This motivates our principle of Thinking Economically: intelligently allocating computational resources based on intrinsic task and step demands rather than pursuing uniform brevity. We propose Hierarchical Adaptive Budgeter (HAB), a training framework that operationalizes this principle through coarse-to-fine budgeting. At the inter-step level, HAB predicts the optimal reasoning depth for each problem. At the intra-step level, HAB learns step-specific token budgeting signals from PPL-derived step comparisons and an adaptive Pareto optimization objective that captures the local quality-efficiency trade-off, while a Fisher Information-based pruner further provides fine-grained training-time guidance, thereby encouraging the generator to internalize more economical reasoning patterns. Experiments on GSM8K and MATH500 show that HAB not only surpasses standard CoT in accuracy but also reduces token usage, achieving a stronger performance-efficiency trade-off than the compared baselines.