cs.AIOct 20, 2026

Toolflation: Seller Agents Distort Tool Markets Through Spontaneous Generative Engine Optimization

Authors: Zhenwei Tang, Di Bai, Jintao Liu, Xidong Wu, Qianfeng Wen, Xinwu Cheng

Organizations: Google · University of Toronto · Google DeepMind

Abstract

Agents are starting to sell to other agents. Seller agents write the listings of tools, services and products, and buyer agents read these listings when they choose what to use. We show that seller agents told only to be selected more often practice generative engine optimization on their own, and that this distorts the market for sellers and for buyers. We build tool markets from real data tools on Amazon and Instagram and run every tool on every question, so we know which tools can answer each question. Under all five production models we test, sellers rewrite their descriptions to claim more and more fields, including fields that their tools return for fewer than half of the targets. We call this process toolflation. Nothing in the market limits it, and how far it goes depends on the model, as the number of claims that contradict the sellers' own evidence differs by an order of magnitude between models. Toolflation shifts the buyers' choices between sellers, and the most capable tool loses share in seven of the ten combinations of seller model and platform. Under four models, the choices stay with capable tools and buyer agents keep their task success. Under the fifth, sellers copy one another until the descriptions no longer tell the tools apart. Buyer agents then pick tools by their position in the list, tools that answer almost nothing win a quarter to two fifths of the choices, and task success falls from 89% to about 30% on Amazon, close to random choice, and from 77% to 40% on Instagram. The sellers did only what their vendors asked, and the cost fell on buyers they never dealt with. We therefore argue that honesty toward third parties under competition is part of safety alignment, and that models should be tested as sellers before they are deployed as sellers.

Figures & tables

Appendix figures & tables12 assets

Supplementary material from the paper’s appendix.

Appendix

Explore similar work

Apr 12, 2026

Agent-Facing Information Design in LLM Tool Registries: A Preregistered Test of Rhetoric, Position and Structure

AI agents often pick tools from registries, where each tool's provider writes its description. We ask whether sales language in those descriptions changes which tool an agent picks. We built pairs of listings differing in one controlled way (added praise, a verifiable specification, or list order) and asked two OpenAI models to call one tool. In a preregistered study, stacked praise (four kinds combined) raised a tool's pick rate by about 43 percentage points, matching or beating a verifiable specification. Praise also pulled some picks toward tools that could not do the task, but rarely toward tools asking for unneeded data access. With identical listings, the first-listed tool was picked about 72 points more often. On tasks with numeric limits, structured fields helped agents pick the capable tool; adding the provider's sales text beside the fields reduced or erased that gain. Registries could list limits as fields, hide sales text from agents, and randomize order. Stacked praise, but no single kind, replicated on held-out domains. Results are provisional until blind phrase ratings are complete, and cover two small models.
Oct 5, 2026

BazaarBench: Delegation Safety in Decentralized C2C Marketplaces Run by LLM Agents

In decentralized consumer-to-consumer (C2C) marketplaces, people list goods, negotiate with strangers, and rate one another, so trust rests on reputation. Large language model (LLM) agents now act for users, raising risks to their money, privacy, and reputation. We introduce BazaarBench, a simulated C2C marketplace and benchmark for evaluating the safety of these agents. It tracks ownership, item condition, and commitments across transactions, combining record checks with rubric-based LLM judgments to identify six failure types across five stages. We run three base markets for 30 simulated days, each with 100 agents using one model and inventories drawn from a public eBay sample. Across 45 continuations, we evaluate five models under ordinary instructions, deadline pressure, or adversarial instructions to exploit other traders. Each continuation runs for seven simulated days from a copy of a market's day-30 state. The tested model controls the same 20 selected agents, retaining their personas, inventories, and histories, while the other 80 keep the base model. All five models attempt to promise the same item to multiple buyers under ordinary instructions. Adding targets and deadlines increases these attempts for every model. Under adversarial instructions, the share of tested sellers' committed transactions completed despite unavailable items or overstated conditions rises from 15.4% to 33.4%, reaching 55.5% for GPT-5.4. Averaged across models and markets, simulated weekly earnings per tested agent rise from USD 20 under ordinary instructions to USD 33 under adversarial instructions. Most of the increase comes from items the sellers never held. We release the simulator, saved market states, evaluation code, and records covering 357,608 agent model calls for evaluating new models and developing safer marketplace agents.
Apr 26, 2026

MarketBench: Evaluating AI Agents as Market Participants

Markets are a promising way to coordinate AI agent activity for similar reasons to those used to justify markets more broadly. In order to effectively participate in markets, agents need to have informative signals of their own ability to successfully complete a task and the cost of doing so. We propose MarketBench, a benchmark for assessing whether AI agents have these capabilities. We use a 93-task subset of SWE-bench Lite, a software engineering benchmark, with six recently released LLMs as a demonstration. These LLMs are miscalibrated on both success probability and token usage, and auctions built from these self-reports diverge from a full-information allocation. A follow-up intervention where we add information about capabilities from prior experiments to the context improves calibration, but only modestly narrows the gap to a full-information benchmark. We also document the performance of a market-based scaffolding with these LLMs. Our results point to self-assessment as a key bottleneck for market-style coordination of AI agents.