Why Better Models Can Create Riskier Systems: Evidence from LLM Agents in Financial Markets

arXiv:2609.04373 · cs.AI, cs.CY · Submitted 2026-09-03 · Read on arXiv

cs.AI, cs.CY

Submitted: 2026-09-03

Updated: 2026-09-03

Comments: 14 pages, 4 figures

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

Terminology

• Agent-Based Simulation — 1× in this paper · explained in 1 episode
• Large Language Models (LLMs) — 1× in this paper · explained in 6 episodes

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