# MAGE: Understanding Stability-Performance Trade-offs in Multi-component Prompt Optimization

arXiv: https://arxiv.org/abs/2607.11944 · HTML: https://mlsanity.com/paper/2607.11944/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- Builds on 12 of its 19 references that are in the map.
- First posted on arXiv 11 Jul 2026.

## Builds on (most cited first, 12 of 12)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
- [Large Language Models are Zero-Shot Reasoners](https://mlsanity.com/paper/2205.11916/) (2022)
- [GPTQ: Accurate Post-Training Quantization for Generative Pre-trained Transformers](https://mlsanity.com/paper/2210.17323/) (2022)
- [Challenging BIG-Bench Tasks and Whether Chain-of-Thought Can Solve Them](https://mlsanity.com/paper/2210.09261/) (2022)
- [MemGPT: Towards LLMs as Operating Systems](https://mlsanity.com/paper/2310.08560/) (2023)
- [AWQ: Activation-aware Weight Quantization for LLM Compression and Acceleration](https://mlsanity.com/paper/2306.00978/) (2023)
- [Large Language Models Are Human-Level Prompt Engineers](https://mlsanity.com/paper/2211.01910/) (2022)
- [DSPy: Compiling Declarative Language Model Calls into Self-Improving Pipelines](https://mlsanity.com/paper/2310.03714/) (2023)
- [AlpacaFarm: A Simulation Framework for Methods that Learn from Human Feedback](https://mlsanity.com/paper/2305.14387/) (2023)
- [Automatic Prompt Optimization with "Gradient Descent" and Beam Search](https://mlsanity.com/paper/2305.03495/) (2023)

## Built on by (most cited first, 1 of 1)

- [Optimize Cheap, Deploy Strong: Cost-Aware Cross-Tier Transfer for Evolutionary Optimization](https://mlsanity.com/paper/2608.10694/) (2026)

## Abstract (arXiv)

How do different components of iterative prompt optimization interact, and what happens when they are combined? We investigate this through MAGE (Memory-Augmented Goal-directed Prompt Evolution), a controlled analysis framework for studying component interaction in prompt optimization. MAGE is not proposed as a superior optimizer in absolute terms; it integrates episodic memory, multi-objective Pareto selection, and adaptive evaluation as a platform for controlled ablation. Our experiments uncover a previously unreported phenomenon, the Prompt Optimization Coupling Effect (POCE): when multiple stochastic optimization signals operate within a closed reflective loop, they interact in ways that simultaneously improve performance and amplify variance, behavior that cannot be predicted by analyzing components in isolation. Three main findings emerge. First, failure-grounded reflection is essential: methods relying only on scores (OPRO) or abstract critique (Self-Refine) fail to improve prompts. Second, MAGE achieves 46.4% versus GEPA's 34.0% on GSM8K-Hard (+12.4%, P(MAGE>GEPA)=0.998, 5 seeds on gpt-4o-mini), with comparable variance (7.3% vs. 7.0%). Third, increasing candidate diversity reveals the clearest POCE signal: expanding the candidate pool from n=3 to n=5 improves mean accuracy by +21.6% while increasing variance by 3.7x. We further validate on Llama 3.1 8B and show POCE is headroom-dependent: when the base model already achieves high accuracy, variance amplification disappears. Finally, in low-data regimes (Ntrain=30), well-designed fixed prompts outperform all reflective optimizers, indicating that scaffold choice dominates optimizer choice. Our results suggest prompt optimization systems behave as coupled stochastic processes and should be evaluated in terms of both performance and stability, not just peak accuracy.