Probing Outcome-Level Resemblance and Mechanism-Level Alignment in LLM Risk Decisions: Evidence from the St. Petersburg Game
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Abstract (arXiv)
LLMs can appear cautious in risk decision-making tasks, yet cautious-looking outputs do not necessarily indicate alignment with human decision-making mechanisms. We investigate this distinction using the St. Petersburg game as a controlled testbed, a classical paradox in which the expected payoff is infinite, yet humans typically report low, finite willingness to pay. We evaluate 28 LLMs with a structured prompt suite that includes the original game; controlled decision variants that perturb truncation, repeated play, numeric endowment, and occupational identity; a human-perspective prompt that asks models to reason as human decision makers; and paired comparisons between base models and their instruction-tuned counterparts. In the original game, most models generate finite bids, creating the appearance of human-like risk behavior. However, this outcome-level resemblance masks substantial mechanism-level differences. The controlled variants reveal that rather than maintaining human-like behavior seen in the original game, models often shift to conditionally and computationally rational behavior. Human-cue prompting and instruction tuning often lower bids and reduce some visible pathologies, but most mechanism-level response patterns remain largely unchanged. These findings show that behavioral alignment in risk decision-making can be surface-level: LLMs may produce human-like risk decisions without exhibiting human-consistent mechanisms. High-stakes evaluations of LLM decision-making should therefore move beyond outcome similarity and examine whether the alignment is supported by mechanism-level consistency.
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References · 9
- 2022Training language models to follow instructions with human feedbackcited by 15,971
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- 2024INVESTORBENCH: A Benchmark for Financial Decision-Making Tasks with LLM-based Agentcited by 64
- 2025StockBench: Can LLM Agents Trade Stocks Profitably In Real-world Markets?cited by 44
- 2024CliMedBench: A Large-Scale Chinese Benchmark for Evaluating Medical Large Language Models in Clinical Scenarioscited by 9
- 2024INS-MMBench: A Comprehensive Benchmark for Evaluating LVLMs' Performance in Insurancecited by 7
- 2025Characterizing Bias: Benchmarking Large Language Models in Simplified versus Traditional Chinesecited by 7
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