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Probing Outcome-Level Resemblance and Mechanism-Level Alignment in LLM Risk Decisions: Evidence from the St. Petersburg Game

arXiv 2606.04978 ↗First posted 3 Jun 2026cs.CL cs.CY econ.GNcited by 0

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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

  1. 2022Training language models to follow instructions with human feedbackcited by 15,971
  2. 2020Artificial Intelligence, Values and Alignmentcited by 448
  3. 2022Thinking Fast and Slow in Large Language Modelscited by 137
  4. 2024Cognitive Bias in Decision-Making with LLMscited by 106
  5. 2024INVESTORBENCH: A Benchmark for Financial Decision-Making Tasks with LLM-based Agentcited by 64
  6. 2025StockBench: Can LLM Agents Trade Stocks Profitably In Real-world Markets?cited by 44
  7. 2024CliMedBench: A Large-Scale Chinese Benchmark for Evaluating Medical Large Language Models in Clinical Scenarioscited by 9
  8. 2024INS-MMBench: A Comprehensive Benchmark for Evaluating LVLMs' Performance in Insurancecited by 7
  9. 2025Characterizing Bias: Benchmarking Large Language Models in Simplified versus Traditional Chinesecited by 7

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