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Corrupted by Reasoning: Reasoning Language Models Become Free-Riders in Public Goods Games

David Guzman Piedrahita, Yongjin Yang, Mrinmaya Sachan, Giorgia Ramponi, Bernhard Schölkopf, Zhijing Jin

As large language models (LLMs) are increasingly deployed as autonomous agents, understanding their cooperation and social mechanisms is becoming increasingly important. In particular, how LLMs balance self-interest and collective well-being is a critical challenge for ensuring alignment, robustness, and safe deployment. In this paper, we examine the challenge of costly sanctioning in multi-agent LLM systems, where an agent must decide whether to invest its own resources to incentivize cooperation or penalize defection. To study this, we adapt a public goods game with institutional choice from behavioral economics, allowing us to observe how different LLMs navigate social dilemmas over repeated interactions. Our analysis reveals four distinct behavioral patterns among models: some consistently establish and sustain high levels of cooperation, others fluctuate between engagement and disengagement, some gradually decline in cooperative behavior over time, and others rigidly follow fixed strategies regardless of outcomes. Surprisingly, we find that reasoning LLMs, such as the o1 series, struggle significantly with cooperation, whereas some traditional LLMs consistently achieve high levels of cooperation. These findings suggest that the current approach to improving LLMs, which focuses on enhancing their reasoning capabilities, does not necessarily lead to cooperation, providing valuable insights for deploying LLM agents in environments that require sustained collaboration. Our code is available at https://github.com/davidguzmanp/SanctSim

Figure 1: Decision-making approaches across different agent types in public goods dilemmas. While game-theoretical agents act in self-interest with suboptimal outcomes, humans use social learning and norm enforcement to achieve cooperation. Traditional LLMs demonstrate consistent, rule-adherent cooperation through rewards, while reasoning-focused LLMs exhibit declining or inconsistent cooperation over time. Contrary to expectations, reasoning capabilities lead to less cooperative behavior in social dilemmas, suggesting that cooperation is not a natural byproduct of increased model capability. From David Guzman Piedrahita et al. (2025), CC BY-SA 4.0.
Figure 2: Schematic representation of the public goods game with norm enforcement. The diagram illustrates the flow from initial endowment (e=20 tokens per player) through institutional choice (Sanctioning Institution, SI, or Sanction-Free Institution, SFI), contribution to the common pool, and resulting payoffs. In the upper path, SI members receive an additional sanctioning endowment (s=20 tokens) to reward (+1 effect, costs 1 token) or punish (-3 effect, costs 1 token) other SI members. Final payoffs are calculated using Equations 1, 2 and 3, where P1’s total payoff: (20−15)+(32/2)+(20−1)+1=41 tokens. From David Guzman Piedrahita et al. (2025), CC BY-SA 4.0.

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