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

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.

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.

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.