A "risk-invariance" vulnerability exists in Large Language Models (LLMs) wherein the model's decision-making policy is functionally decoupled from its verbalized confidence and externally defined error penalties. Despite generating calibrated confidence estimates (internal epistemic uncertainty), affected models fail to adjust their abstention thresholds when presented with high-penalty incentives (e.g., negative utility for incorrect answers). This results in "utility collapse," where models…
Source: arXiv