# Cheap Talk Stabilizes Strategic Interaction in LLM Agents

arXiv: https://arxiv.org/abs/2609.16270 · HTML: https://mlsanity.com/paper/2609.16270/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Social simulation and multi-agent debate, one of 16 directions in LLM agents and tool use.
- Builds on 26 of its 63 references that are in the map.
- First posted on arXiv 14 Sep 2026.

## Placed in

- LLM agents and tool use / [Social simulation and multi-agent debate](https://mlsanity.com/agents/social-simulation-and-multi-agent-debate/)

## Builds on (most cited first, 26 of 26)

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- [Prompting from the bench: Large-scale pretraining is not sufficient to prepare LLMs for ordinary meaning analysis](https://mlsanity.com/paper/2510.25356/) (2025)
- [Humans expect rationality and cooperation from LLM opponents in strategic games](https://mlsanity.com/paper/2505.11011/) (2025)
- [Are LLMs reliable? An exploration of the reliability of large language models in clinical note generation](https://mlsanity.com/paper/2505.17095/) (2025)
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## Abstract (arXiv)

Large language models are increasingly deployed as interacting agents, making the persistence of their action policies across repeated interaction critical for reliable multi-agent operation. We investigate whether and how agent-generated, non-binding pre-play communication ("cheap talk") increases such persistence in four open-weight 7-9B-parameter LLMs. Our experiments span four repeated two-player games -- Prisoner's Dilemma, Snowdrift, Stag Hunt, and Harmony -- with incentive structures ranging from strategic conflict to alignment, each presented in six contexts. We observe unstable trajectories in all four games, although their prevalence and magnitude depend strongly on model and context. Across models, games, and contexts, cheap talk is predominantly stabilizing, with five corrected reversals concentrated in social or team framings; effects vary substantially by model and context. Controlled current-message interventions identify two separable output-level channels in Qwen: reduced action uncertainty and less between-round drift in action probabilities. Matched history-by-message counterfactuals further show that recent partner behavior conditions how mutual-benefit versus self-prioritizing language affects policy persistence. Finally, in Prisoner's Dilemma, we identify in Qwen and Falcon a history-balanced policy-content direction in late transformer layers; projecting out this direction increases realized switching during closed-loop play, demonstrating that complete trajectories are causally sensitive to this component. Together, these findings show that cheap talk can make individual trajectories more persistent across diverse incentive structures, while revealing that the magnitude and mechanisms of stabilization are model- and history-dependent.