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Large Language Models as Simulated Economic Agents: What Can We Learn from Homo Silicus?

The capacity of LLMs to imitate human agents in behavioural economics experiments: the effect of endowing models with different attributes and the reproducibility of results.

Research Questions

  1. Can LLMs imitate human agents in behavioural economics experiments?
  2. Can these experiments be reproduced using LLMs and expanded with new parameters?
  3. When “endowed” with different attributes, can LLMs represent diverse, human-like perspectives?

Results

  • GPT-3 qualitatively reproduced the findings of behavioural economics experiments run with human participants.
  • More advanced models (e.g., davinci-003) performed better, while smaller models did not respond reliably to the attributes they were endowed with.
  • LLM-based experiments are significantly faster and more cost-efficient than human subject studies.
  • LLMs can behave like diverse agents when endowed with different personalities or viewpoints.

Findings

  • Experiment Replication:
    • Classic behavioural findings, such as social preferences, fairness judgments, and status quo bias, were successfully reproduced using LLMs.
  • Diversity Through Endowment:
    • When models were given different political views or preferences, their responses shifted predictably, showing that viewpoint diversity can be controlled.
  • Limitations of Smaller Models:
    • Smaller GPT-3 variants (ada, babbage, curie) often failed to respond to the endowed attributes or to capture nuanced behavioural patterns.
  • Memorisation Concerns:
    • Because LLMs may have been exposed to descriptions of these experiments during training, questions remain regarding the originality of the reproduced behaviours.
  • Ethical Considerations:
    • Running experiments without human participants has advantages, but the authenticity of AI-generated responses and the risk of misrepresentation remain open concerns.

Scores

  • LLM Models: 5
  • Synthetic Data: 4
  • Method: 4
  • Speed: 4
  • Ethics: 3
  • Accuracy: 3
  • Demographics: 2

If you would like to explore this research in more detail, click here to read the full paper.

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