Measuring Preference Coherence, Risk Sensitivity, and Expected Utility Trade-offs in Large Language Models
Aryan masani
This study evaluates how system prompt framings alter the internal consistency, risk sensitivity, and economic decision-making of large language models (LLMs) across 10 financial and operational scenarios. Core Findings Expected Value Maximization: In unconstrained default framings, models act primarily as expected monetary value (EV) maximizers, selecting higher-yielding options or taking gambles in loss domains to maximize overall expected net payoff. Constraint-Driven Risk Aversion: Introducing strict budget or risk-minimization constraints causes models to abandon pure EV maximization, prioritizing baseline survival and downside protection over higher-yield options with severe tail risks. Liquidity Trade-offs: Under resource constraints, models shift toward preserving immediate liquidity (e.g., selecting monthly subscriptions) rather than minimizing long-term cumulative outlays (e.g., lifetime purchases). Utility Reweighting: System prompt directives act as systematic re weightings of a model's internal utility calculation—introducing variance penalties—rather than creating random decision noise.
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@misc {
title={
(HckPrj) Measuring Preference Coherence, Risk Sensitivity, and Expected Utility Trade-offs in Large Language Models
},
author={
Aryan masani
},
date={
},
organization={Apart Research},
note={Research submission to the research sprint hosted by Apart.},
howpublished={https://apartresearch.com}
}


