Financial Fragility in Societies of LLM Agents: Coordination Failures and Stabilizing Mechanisms

arXiv:2609.30940 · cs.AI, q-fin.GN · Submitted 2026-09-25 · Read on arXiv

cs.AI, q-fin.GN

Submitted: 2026-09-25

Updated: 2026-09-25

Comments: 25 pages, 6 figures, 12 tables. Code: https://anonymous.4open.science/r/FinFrail-CF26

License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/

Terminology

• Cooperation — 9× in this paper · explained in 2 episodes
• Robustness — 5× in this paper · explained in 5 episodes
• Trace — 5× in this paper · explained in 2 episodes
• Ablation — 4× in this paper · explained in 1 episode
• Benchmarking — 2× in this paper · explained in 3 episodes
• Calibration — 2× in this paper · explained in 7 episodes
• Consistency — 2× in this paper · explained in 3 episodes
• Core — 2× in this paper · explained in 2 episodes
• Generative AI — 2× in this paper · explained in 2 episodes
• Reasoning Traces — 2× in this paper · explained in 3 episodes
• AI Agents — 1× in this paper · explained in 2 episodes
• Benchmark — 1× in this paper · explained in 2 episodes
• Failure Modes — 1× in this paper · explained in 3 episodes
• Generalization — 1× in this paper · explained in 13 episodes
• Large Language Model (LLM) — 1× in this paper · explained in 3 episodes

Sources

• Why Do Multi-Agent LLM Systems Fail?
• Welfare Diplomacy: Benchmarking Language Model Cooperation
• Social Contagion and Bank Runs: An Agent-Based Model with LLM Depositors
• CoopEval: Benchmarking Cooperation-Sustaining Mechanisms and LLM Agents in Social Dilemmas
• FinMem: A Performance-Enhanced LLM Trading Agent with Layered Memory and Character Design
• A Multimodal Foundation Agent for Financial Trading: Tool-Augmented, Diversified, and Generalist

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