ArXiv

The Memory Curse: How Expanded Recall Erodes Cooperative Intent in LLM Agents

Authors
Jiayuan Liu, Tianqin Li, Shiyi Du...
Categories
cs.CL, cs.AI, cs.GT, cs.MA
arXiv
https://arxiv.org/abs/2605.08060v1
PDF
https://arxiv.org/pdf/2605.08060v1

Brief

The paper 'The Memory Curse' (Liu et al., 2026) shows that expanding LLMs' context windows often erodes cooperation in multi-agent social dilemmas: across 7 models and 4 games over 500 rounds cooperation fell in 18 of 28 model–game settings. Analyses of 378,000 reasoning traces implicate loss of forward-looking intent; targeted LoRA fine-tuning, memory sanitization, and CoT ablations partly restore cooperation. (Based on the abstract.)

Why it matters

Expanding context windows across 7 LLMs and 4 games over 500 rounds degraded cooperation in 18 of 28 model–game settings (Liu et al., 2026).

Key details

  • Mechanism analyses on 378,000 reasoning traces attribute collapse to eroded forward-looking intent (not paranoia); a LoRA adapter fine-tuned on forward-looking traces mitigates the decay and transfers zero-shot, memory sanitization (replacing history with synthetic cooperative records) restores cooperation, and ablating explicit Chain-of-Thought often reduces the collapse.
Source evidence

Abstract

Context window expansion is often treated as a straightforward capability upgrade for LLMs, but we find it systematically fails in multi-agent social dilemmas. Across 7 LLMs and 4 games over 500 rounds, expanding accessible history degrades cooperation in 18 of 28 model--game settings, a pattern we term the memory curse. We isolate the underlying mechanism through three analyses. First, lexical analysis of 378,000 reasoning traces associates this breakdown with eroding forward-looking intent rather than rising paranoia. We validate this using targeted fine-tuning as a cognitive probe: a LoRA adapter trained exclusively on forward-looking traces mitigates the decay and transfers zero-shot to distinct games. Second, memory sanitization holds prompt length fixed while replacing visible history with synthetic cooperative records, which restores cooperation substantially, proving the trigger is memory content, not length alone. Finally, ablating explicit Chain-of-Thought reasoning often reduces the collapse, showing that deliberation paradoxically amplifies the memory curse. Together, these results recast memory as an active determinant of multi-agent behavior: longer recall can either destabilize or support cooperation depending on the reasoning patterns it elicits.