On Emotion-Sensitive Decision Making of Small Language Model Agents

Small language models (SLMs) in the 100M-10B parameter range increasingly power production systems, yet whether they possess the internal emotion representations recently discovered in frontier models remains unknown. We present the first comparative analysis of emotion vector extraction methods for SLMs, evaluating 9 models across 5 architectural families (GPT-2, Gemma, Qwen, Llama, Mistral) using 20 emotions and two extraction methods (generation-based and comprehension-based). Generation-based extraction produces statistically superior emotion separation (Mann-Whitney p = 0.007; Cohen's d = -107.5), with the advantage modulated by instruction tuning and architecture. Emotion representations localize at middle transformer layers (~50% depth), following a U-shaped curve that is architecture-invariant from 124M to 3B parameters. We validate these findings against representational anisotropy baselines across 4 models and confirm causal behavioral effects through steering experiments, independently verified by an external emotion classifier (92% success rate, 37/40 scenarios). Steering reveals three regimes -- surgical (coherent text transformation), repetitive collapse, and explosive (text degradation) -- quantified by perplexity ratios and separated by model architecture rather than scale. We document cross-lingual emotion entanglement in Qwen, where steering activates semantically aligned Chinese tokens that RLHF does not suppress, raising safety concerns for multilingual deployment. This work provides methodological guidelines for emotion research on open-weight models and contributes to the Model Medicine series by bridging external behavioral profiling with internal representational analysis.

As Large Language Models (LLMs) are increasingly deployed as autonomous agents in high-stakes domains, understanding contextual factors that may modulate their decision-making becomes critical. While LLMs are trained to perceive and resonate with users' emotions, it remains unclear whether induced emotion can influence their sequential decision-making. We investigate this question using the Iowa Gambling Task (IGT), a classic psychological paradigm for studying decision-making under uncertainty, combined with an imagination-based emotion induction procedure. We first validate the feasibility of this paradigm by confirming that LLMs can sense strong, distinguishable emotions from context and that LLM agents can learn from sequential interactions in a human-like pace. With the validated setup, we find that, different from humans, induced emotion does not significantly bias the decision dynamics of LLM agents on average. However, the effects of anger are conditioned: inducing anger makes LLM agents less sensitive to penalties for bad decisions, and in early stages of the game, anger can lower exploration, locking decisions into a few choices early. These findings reveal the subtle yet distinct effects of induced emotion on LLM decision-making compared to human behavior, and provide a tool for future research on affective modulation of LLM agents.

Emotion plays an important role in human cognition and performance. Motivated by this, we investigate whether analogous emotional signals can shape the behavior of large language models (LLMs) and agents. Existing emotion-aware studies mainly treat emotion as a surface-level style factor or a perception target, overlooking its mechanistic role in task processing. To address this limitation, we propose E-STEER, an interpretable emotion steering framework that enables direct representation-level intervention in LLMs and agents. It embeds emotion as a structured, controllable variable in hidden states, and with it, we examine the impact of emotion on objective reasoning, subjective generation, safety, and multi-step agent behaviors. The results reveal non-monotonic emotion-behavior relations consistent with established psychological theories, and show that specific emotions not only enhance LLM capability but also improve safety, and systematically shape multi-step agent behaviors.