GPS-Bench: A Governance Policy Benchmark for Automating Policy Analysis
Authors: Linh Le, Melanie Bui, My Chiffon Nguyen, Zachary Schlosser, David Williams-King
Organizations: 1Lida Safety · 2ERA
Abstract
Policy analysis requires more than predicting whether a proposal will pass: it requires identifying who will be affected, how those actors respond, and what follows. LLM-based policy simulations model these processes at scale, but their validity is hard to establish when plausible behaviour is never compared with observed outcomes. We introduce GPS-Bench, an evidence-grounded benchmark for governance policy simulation that links policies to relevant actors, actor actions and downstream impacts using legislative records, lobbying disclosures, regulatory documents, corporate filings, economic data and other public evidence. Actors are reconstructed from the dated record rather than prompted as archetypes, so a persona is an evidence object with provenance; a human-annotated pool forms the Gold evaluation set, while cases labelled by a separate LLM from retrieved evidence are treated as Silver supervision and never as test labels. Because every inference mode reads the same grounded state and emits the same schema, GPS-Bench turns "does multi-agent simulation help?" into a controlled comparison: we contrast joint reasoning, independent and communicating actor agents, graph-based methods and weight-level fine-tuning over one policy state. Fine-tuning on the grounded record gives the strongest actor-level impact prediction, and decomposition does not beat it; what decomposition adds is mechanism. Agents hold private, non-identical evidence, each seeing its own exposure clause, and address named partners with concrete joint proposals, what they offer, what they need in return, and why acting together beats acting alone, so the coalitions that form can be checked against the commitments the record holds. GPS-Bench therefore gives a common empirical setting for studying when evidence, actor modelling and multi-agent interaction improve the prediction and interpretation of policy outcomes.
LLM agents operating under organizational policies must comply with authorization constraints typically specified in natural language. In practice, such specifications inevitably contain ambiguities and logical or semantic gaps that cause the agent's behavior to systematically diverge from the true requirements. We ask: by letting an agent evolve its policy understanding through interaction and corrective feedback from pre-deployment testing, can it autonomously refine its interpretation to close specification gaps? We propose PolicyBank, a memory mechanism that maintains structured, tool-level policy insights and iteratively refines them -- unlike existing memory mechanisms that treat the policy as immutable ground truth, reinforcing "compliant but wrong" behaviors. We also contribute a systematic testbed by extending a popular tool-calling benchmark with controlled policy gaps that isolate alignment failures from execution failures. While existing memory mechanisms achieve near-zero success on policy-gap scenarios, PolicyBank closes up to 82% of the gap toward a human oracle.
The formation of political coalitions is a complex negotiation driven by both concrete policy objectives and deep-seated ideological convictions. While Large Language Models (LLMs) open new avenues for computational political science, the neutrality and helpfulness biases instilled by Reinforcement Learning from Human Feedback (RLHF) prevent them from sustaining steadfast partisan behaviour. We present a multi-agent framework that reconciles factual grounding with ideological alignment by combining Supervised Fine-Tuning (SFT), Direct Preference Optimization (DPO), and Retrieval-Augmented Generation (RAG): DPO instils aggressive party-specific personas, while a per-party RAG pipeline keeps each agent bounded to its official manifesto. We operationalize the framework on the 2019 Flemish election, deploying the partisan agents in a hub-and-spoke negotiation arbitrated by a formateur. To make the emergent negotiation interpretable, we introduce a Multi-Layered Information Lineage Topology (MILT) that traces every clause in the final agreement back to its manifesto origin and classifies it into five provenance states, a Coalition Influence Score (CIS) that aggregates these traceable contributions to identify which party shaped the agreement, and a real-world grounding pass that benchmarks each simulated provision against the historically adopted coalition agreement. Across three independent simulations the framework yields a stable winner and ranking (N-VA ahead of CD&V and Open Vld), and manifesto-anchored lineage reliably predicts real-world materialization whereas hallucinated content does not. The result is a transparent, scalable testbed for the ex-ante exploration of party compatibility and formateur-mediated compromise.
Dylan Van Mulders, Matthias Bogaert, Dirk Van den Poel
Simulating group-level user behavior enables scalable counterfactual evaluation of merchant strategies without costly online experiments. However, building a trustworthy simulator faces two structural challenges. First, information incompleteness causes reasoning-based simulators to over-rationalize when unobserved factors such as offline context and implicit habits are missing. Second, mechanism duality requires capturing both interpretable preferences and implicit statistical regularities, which no single paradigm achieves alone. We propose Policy-Guided Hybrid Simulation (PGHS), a dual-process framework that mines transferable decision policies from behavioral trajectories and uses them as a shared alignment layer. This layer anchors an LLM-based reasoning branch that prevents over-rationalization and an ML-based fitting branch that absorbs implicit regularities. Group-level predictions from both branches are fused for complementary correction. We deploy PGHS on Meituan with 101 merchants and over 26,000 trajectories. PGHS achieves a group simulation error of 8.80%, improving over the best reasoning-based and fitting-based baselines by 45.8% and 40.9% respectively.