mlsanityData to 7 Oct 2026

Formal Mechanisms for Market Stability in Self-Interested Agent Societies: A Marketplace Simulation Study

arXiv 2607.08652 ↗First posted 9 Jul 2026cs.AIcited by 0

On the map: LLM agents and tool use → Financial trading and forecasting agents

Abstract (arXiv)

Self-interested agents, left unconstrained, tend toward defection in repeated social dilemmas, causing cooperative gains from trade to collapse. This paper investigates what formal mechanisms, layered on top of unrestricted communication, are sufficient for a society of such agents to maintain market stability, and how resilient those mechanisms are to adversarial attack. We instantiate the research question as a multi-agent marketplace simulation where 18 LLM agents (DeepSeek-V3) with complementary production specialties must trade within a constrained social network to obtain utility. We conduct two experimental phases: (1) a mechanism comparison across eight conditions under progressive troll injection over 200 rounds, identifying Mediation as the top-performing mechanism; and (2) adversarial red-teaming of Mediation using iteratively prompt-optimised LLM-driven trolls, finding that the best attack (v6) reduces honest-agent utility by 13.3% but cannot collapse the market. Mediation enables recovery even under sustained adversarial pressure. We define adversarial robustness as a mechanism's ability to sustain positive honest-agent utility under optimised attack, and find that Mediation is robust: it can be bent but not broken.

Key facts. No citing papers in the map yet (data through 7 Oct 2026). Placed in Financial trading and forecasting agents, one of 16 directions in LLM agents and tool use. Builds on 4 of its 18 references that are in the map. First posted on arXiv 9 Jul 2026.

Builds on

4 of 18 references.

Closest ancestors · 1

Same direction, newest first

  1. 2026Institutional AI: Governing LLM Collusion in Multi-Agent Cournot Markets via Public Governance Graphs16 Jan

Other references · 3

  1. 2025Corrupted by Reasoning: Reasoning Language Models Become Free-Riders in Public Goods Gamescited by 20
  2. 2026CoopEval: Benchmarking Cooperation-Sustaining Mechanisms and LLM Agents in Social Dilemmascited by 14
  3. 2026Mechanism Design Is Not Enough: Prosocial Agents for Cooperative AIcited by 2

Built on by

Not cited yet.

Similar, not cited

Close in wording, no citation either way

  1. 2026Agent Bazaar: Enabling Economic Alignment in Multi-Agent Marketplaces
  2. 2026Contagion on the Trading Floor: How Adversarial Signals Spread in Multi-Agent Trading Systems
  3. 2026Poisoning Agentic Alpha: Adversarial Vulnerabilities Across Roles and Architectures in Multi-Agent Trading Systems
  4. 2026Your Agent Says Yes: Interpreting Adversarial Market Behavior Beyond Individual Transactions
  5. 2026SoK: Trading Agents or Market Crashers? Dissecting Robustness and Security Failures in Academic Financial LLM Trading Schemes
  6. 2026Strategic Exploitation in LLM Agent Markets: A Simulation Framework for E-Commerce Trust
  7. 2026Competitive Market Behavior of LLMs
  8. 2025From Competition to Coordination: Market Making as a Scalable Framework for Safe and Aligned Multi-Agent LLM Systems