# Considering Context: When World Models Need Context Encoders

arXiv: https://arxiv.org/abs/2610.06651 · HTML: https://mlsanity.com/paper/2610.06651/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Latent dynamics models and model-based RL, one of 11 directions in World models.
- Builds on 3 of its 30 references that are in the map.
- First posted on arXiv 5 Oct 2026.

## Placed in

- World models / [Latent dynamics models and model-based RL](https://mlsanity.com/wm/latent-dynamics-models-and-model-based-rl/)
- Deep reinforcement learning methods / [Deep RL algorithms and representations](https://mlsanity.com/deeprl/deep-rl-algorithms-and-representations/)

## Builds on (most cited first, 3 of 3)

- [RL2: Fast Reinforcement Learning via Slow Reinforcement Learning](https://mlsanity.com/paper/1611.02779/) (2016)
- [Learning to reinforcement learn](https://mlsanity.com/paper/1611.05763/) (2016)
- [Contextual Markov Decision Processes](https://mlsanity.com/paper/1502.02259/) (2015)

## Abstract (arXiv)

Methods for generalization in model-based reinforcement learning typically assume that an agent cannot recover the latent context governing the environment dynamics from its own experience, and therefore supplies it externally. We formalize and test this assumption with predictive sufficiency, which quantifies what access to the context adds to next-step prediction under the visitation distribution an agent induces, and separates that quantity into a history-recoverable part, a residual requiring the true context, and the deficit added by a finite model. We classify context-aware algorithms by the predictive risk their conditioning set can target and demonstrate across environments of increasing identification difficulty that the headroom does not follow the MDP class. The same task under different priors leaves predictive headroom in one setting and nothing distinguishable from zero in another, where the agent's behavior implicitly identifies the context and any benefit of such a mechanism cannot be attributed to missing information. Where headroom persists, the learned state exposes it only partially, and adding the true context still lowers the risk. Our contribution is a practical criterion for matching contextual mechanisms to the information available to them, estimated from the ordinary trained agent without a reference policy.