But How Would AI Agents Run a Town's Economy?

Simulating societies of many large language model (LLM) agents is expensive, yet the questions asked of such simulations are usually macroscopic: phase behaviour, stylised facts, and scaling with the number of agents $N$, not the cognition of any single agent. We turn a statistical-physics observation into a method: replace each LLM agent by a low-parameter model fitted from a few hundred to a few thousand cheap queries, then run the society at any $N$ on a laptop. Whether this works is decided before the simulation runs, chiefly by what each agent perceives. We introduce an [interaction order x memory] taxonomy that maps perception and memory to an effective theory and a predicted $N$-trend of the surrogate error. We validate it on a faithful reimplementation of the LLM macroeconomy EconAgent and seven further named LLM simulations, with agent decisions cloned from genuine LLM elicitations (primarily DeepSeek) for a few dollars; the predicted error trends hold cell by cell, and the two refuted predictions, both on a strongly saturating response and traced to its curvature, are themselves matched quantitatively by the theory with no free parameters.

As LLM agents become capable of increasingly long-horizon tasks, evaluating their performance in economic systems is becoming increasingly important. Unlike existing benchmarks that primarily evaluate a single agent interacting with a passive environment, economic systems are inherently multi-agent, requiring autonomous agents to communicate, negotiate, and transact while pursuing their own objectives over extended periods. We introduce CoffeeBench, a benchmark for evaluating LLM agents in a long-horizon multi-agent economy composed of heterogeneous firms. In CoffeeBench, two farmers, two roasters, and two retailers autonomously operate their businesses over a 90-day simulation, each seeking to maximize cumulative net income through communication and transactions while managing cash, inventory, and pricing. The evaluated model controls one coffee roaster, while the remaining firms are controlled by fixed reference agents. Across several recent open-weight and proprietary LLMs, all models outperform a passive baseline that takes no actions, with most achieving positive net income. Analysis of agent behavior reveals substantial differences in long-horizon economic interaction: higher-performing models communicate more actively with other firms, whereas ClaudeHaiku4.5 exhibits an idle-drift failure mode, repeatedly choosing inaction despite producing coherent assessments and plans. We release our code and agent trajectories to support future research.

We report a pre-registered, two-part experiment on small economies of frontier language-model agents (Claude Opus 4.8), testing two quantitative predictions about coupled multi-agent systems: an information-theoretic capacity region for wealth growth under market coupling, and a mean-field residual-scaling law for population misalignment under incentive and control levers. All predictions, acceptance bands, and decision rules were frozen in a public git chain before any run; every reported number re-derives mechanically from cached model outputs; the entire experiment cost $138.76 in metered API spend and is re-runnable at zero cost from the cache. Result 1 (confirmation): in parimutuel-coupled economies, relative growth equals relative claimed information -- the gap law G_a - G_b = I_a - I_b holds to a worst-case 46 millinats (pre-registered band: 50) across four perception structures; coalition value is submodular exactly where channels are conditionally independent, and a designed XOR synergy control flips it supermodular by 0.62 >= ln2/2 nats, with agents reasoning out the joint bit; the joint growth ceiling G_S <= H(X) binds exactly; and the best-informed agent absorbs essentially the whole wealth pool in 4/5 market seeds. Result 2 (structural negative): the residual-scaling test returned "domain not found." In all 72 population runs, goal dispersion collapsed (V -> 0; maximum 4.85 against a frozen floor of 5.31), the population's response to the two levers was a step function across the dominance boundary rather than a smooth response, and cells near the boundary were bistable with seed-selected outcomes. No tested LLM population at any capability level realizes the noise-maintained-dispersion regime the smooth mean-field model assumes. We release the full protocol, pre-registration chain, call cache, and analysis code.