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Author

Binchi Zhang

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Preprint Aug 2026

Level-k Distinguishable Mechanisms for Evaluating Bounded Rationality in LLMs

Strategic depth of reasoning is essential for human interaction of Large Language Models (LLMs) operating in boundedly rational environments. However, existing evaluations are primarily based on canonical games prevalent in pretraining corpora, making it difficult to disentangle true strategic reasoning from memorisation. To address this, we formalise a necessary level-K distinguishability condition for strategic depth inference and construct a suite of novel game structures that meet this standard. Using these games, we evaluate strategic depth in LLMs from both the Chain-of-Thought tokens and actual actions under recursive reasoning and an inductive trace of opponent game-play data. Across experimental trials spanning four LLMs, four game structures, and ten levels of iterated reasoning, we find that model models maintain accurate strategic depth under recursive reasoning, with strong internal consistency between stated reasoning and actions at every level. Errors arise from using the wrong number of iterated depth of reasoning steps, not from computing best responses incorrectly. However, inductive inference from opponent play degrades accuracy sharply and unevenly across games, and explicit strategic mentalizing in the chain of thought substantially improves overall performance.

Binchi Zhang, Atrisha Sarkar · 0 citations
Conference Open access 2026

LOKA: Conflict-Aware LLM Knowledge Update with Adaptive Knowledge Memory

Large Language Models (LLMs) have achieved remarkable success in natural language processing by encoding extensive knowledge, but their utility relies on timely updates as human knowledge keeps evolving. In this paper, we investigate the problem of LLM knowledge updates, which requires simultaneously unlearning unwanted information and learning new knowledge. Existing approaches that tackle unlearning and learning separately encounter task conflicts and knowledge management issues when applied to comprehensive knowledge updates. In this paper, we validate our findings with theoretical analysis and empirical evidence, and propose LOKA, a conflict-aware framework for Large language mOdel Knowledge updAtes. During training, LOKA introduces an adaptive knowledge memory approach in which updated knowledge is allocated across multiple memory units. During inference, LOKA retrieves the most relevant memory unit from the knowledge memory and integrates it with the original LLM to apply updated knowledge, while a learning-based router controls the activation of the knowledge memory to improve knowledge utilization. Extensive experiments demonstrate the efficacy of LOKA in achieving accurate, flexible, and conflict-aware knowledge updates.

Binchi Zhang, Zhengzhang Chen, Zaiyi Zheng et al. · 0 citations