mlsanityData to 7 Oct 2026

What Does Context Compression Cost an Agent? Interaction Costs Unrevealed by Task-Completion Metrics

arXiv 2608.16370 ↗First posted 17 Aug 2026cs.AIcited by 0

On the map: LLM agents and tool use → Agent memory systems

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Abstract (arXiv)

Task completion is the standard metric for evaluating context compression, yet it is incomplete: compression can increase an agent's interaction cost by forcing it to reacquire dropped state while leaving completion statistically unchanged. We introduce a controlled runtime measurement protocol for reacquisition cost in a bounded-horizon tool-using agent. The agent acts in a deterministic planning environment under a fixed 24-turn horizon. We vary compression severity, compare a dropping operator with a fact-preserving operator, restore dropped state through controlled oracle interventions, and decompose tool calls into retrieval and execution. We evaluate three models across two task regimes. Retrieval calls increase in all six model-regime comparisons and account for almost all added interaction; five of six remain significant after Holm correction. At the prespecified 5x comparison point, completion changes are not significant in any cell. DeepSeek shows a significant completion drop only at 10x compression. GPT-5.5 is the clearest case: completion changes from 80% to 85% (p = 1.0) while retrieval increases from 21.0 to 63.9 calls (p = .002). Retention interventions further separate state quantity, state type, and content validity. Random selection is comparable to an offline hindsight oracle, while replacing retained D-state with semantically irrelevant content increases retrieval by 57% (p < .001) without a significant completion change. In a second environment, ALFWorld, sliding compression produces no retrieval surge, showing that the reacquisition signature is environment-dependent rather than intrinsic to shortening context. Overall, compression can impose hidden interaction costs when execution-relevant state becomes absent and must be reacquired, while completion alone may not expose those costs.

Key facts. No citing papers in the map yet (data through 7 Oct 2026). Placed in Agent memory systems, one of 16 directions in LLM agents and tool use. Builds on 19 of its 29 references that are in the map. First posted on arXiv 17 Aug 2026.

Builds on

19 of 29 references.

Closest ancestors · 3

Same direction, newest first

  1. 2026Token Reduction Is Not Cost Reduction13 Jul
  2. 2026What to Keep, What to Forget: A Rate--Distortion View of Memory Compaction in LLMs and Agents9 Jul
  3. 2025ACON: Optimizing Context Compression for Long-horizon LLM Agents1 Oct

Other references · 16

  1. 2024AgentBoard: An Analytical Evaluation Board of Multi-turn LLM Agentscited by 319
  2. 2023LLMLingua: Compressing Prompts for Accelerated Inference of Large Language Modelscited by 279
  3. 2025Survey on Evaluation of LLM-based Agentscited by 190
  4. 2025The Complexity Trap: Simple Observation Masking Is as Efficient as LLM Summarization for Agent Context Managementcited by 40
  5. 2025CostBench: Evaluating Multi-Turn Cost-Optimal Planning and Adaptation in Dynamic Environments for LLM Tool-Use Agentscited by 32
  6. 2024Fundamental Limits of Prompt Compression: A Rate-Distortion Framework for Black-Box Language Modelscited by 18
  7. 2026MEMENTO: Teaching LLMs to Manage Their Own Contextcited by 16
  8. 2026Are Tools All We Need? Unveiling the Tool-Use Tax in LLM Agentscited by 11
  9. 2026The Verifier Tax: Horizon Dependent Safety Success Tradeoffs in Tool Using LLM Agentscited by 10
  10. 2026RE-TRAC: REcursive TRAjectory Compression for Deep Search Agentscited by 9
  11. 2026Beyond pass@1: A Reliability Science Framework for Long-Horizon LLM Agentscited by 8
  12. 2026Reclaim Evaluation: A Lossy Memory Is Worse Than an Empty Onecited by 7
4 more
  1. 2026Compress the Context, Keep the Commitments: A Formal Framework for Verifiable LLM Context Compressioncited by 3
  2. 2026Control Under Compression: Reliability Frontiers for Tool-Using Agentscited by 3
  3. 2026Less Context, Better Agents: Efficient Context Engineering for Long-Horizon Tool-Using LLM Agentscited by 2
  4. 2026Context, Reasoning, and Hierarchy: A Cost-Performance Study of Compound LLM Agent Design in an Adversarial POMDPcited by 1

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  2. 2026Adapting Context Compression for Long-Horizon Agents with Counterfactual Continuations
  3. 2026Beyond Token Savings: A Systematic Study of Context Compression in LLM Agents
  4. 2026FOCUS: Training-Free Decision-Preserving Context Compression for LLM Agents
  5. 2026StateComp: Learning When to Compress History in Long Horizon Agents
  6. 2026Prompt Compression in Production Task Orchestration: A Pre-Registered Randomized Trial
  7. 2026ACM: Agentic Context Management for Long Horizon Tasks
  8. 2026An Empirical Cost Attribution of Context-Compression Gateways in Multi-Turn Coding Agents