STEER-ME: Assessing the Microeconomic Reasoning of Large Language Models

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Main Authors: Raman, Narun, Lundy, Taylor, Amin, Thiago, Perla, Jesse, Leyton-Brown, Kevin
Format: Preprint
Published: 2025
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author Raman, Narun
Lundy, Taylor
Amin, Thiago
Perla, Jesse
Leyton-Brown, Kevin
author_facet Raman, Narun
Lundy, Taylor
Amin, Thiago
Perla, Jesse
Leyton-Brown, Kevin
contents How should one judge whether a given large language model (LLM) can reliably perform economic reasoning? Most existing LLM benchmarks focus on specific applications and fail to present the model with a rich variety of economic tasks. A notable exception is Raman et al. [2024], who offer an approach for comprehensively benchmarking strategic decision-making; however, this approach fails to address the non-strategic settings prevalent in microeconomics, such as supply-and-demand analysis. We address this gap by taxonomizing microeconomic reasoning into $58$ distinct elements, focusing on the logic of supply and demand, each grounded in up to $10$ distinct domains, $5$ perspectives, and $3$ types. The generation of benchmark data across this combinatorial space is powered by a novel LLM-assisted data generation protocol that we dub auto-STEER, which generates a set of questions by adapting handwritten templates to target new domains and perspectives. Because it offers an automated way of generating fresh questions, auto-STEER mitigates the risk that LLMs will be trained to over-fit evaluation benchmarks; we thus hope that it will serve as a useful tool both for evaluating and fine-tuning models for years to come. We demonstrate the usefulness of our benchmark via a case study on $27$ LLMs, ranging from small open-source models to the current state of the art. We examined each model's ability to solve microeconomic problems across our whole taxonomy and present the results across a range of prompting strategies and scoring metrics.
format Preprint
id arxiv_https___arxiv_org_abs_2502_13119
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle STEER-ME: Assessing the Microeconomic Reasoning of Large Language Models
Raman, Narun
Lundy, Taylor
Amin, Thiago
Perla, Jesse
Leyton-Brown, Kevin
Computation and Language
How should one judge whether a given large language model (LLM) can reliably perform economic reasoning? Most existing LLM benchmarks focus on specific applications and fail to present the model with a rich variety of economic tasks. A notable exception is Raman et al. [2024], who offer an approach for comprehensively benchmarking strategic decision-making; however, this approach fails to address the non-strategic settings prevalent in microeconomics, such as supply-and-demand analysis. We address this gap by taxonomizing microeconomic reasoning into $58$ distinct elements, focusing on the logic of supply and demand, each grounded in up to $10$ distinct domains, $5$ perspectives, and $3$ types. The generation of benchmark data across this combinatorial space is powered by a novel LLM-assisted data generation protocol that we dub auto-STEER, which generates a set of questions by adapting handwritten templates to target new domains and perspectives. Because it offers an automated way of generating fresh questions, auto-STEER mitigates the risk that LLMs will be trained to over-fit evaluation benchmarks; we thus hope that it will serve as a useful tool both for evaluating and fine-tuning models for years to come. We demonstrate the usefulness of our benchmark via a case study on $27$ LLMs, ranging from small open-source models to the current state of the art. We examined each model's ability to solve microeconomic problems across our whole taxonomy and present the results across a range of prompting strategies and scoring metrics.
title STEER-ME: Assessing the Microeconomic Reasoning of Large Language Models
topic Computation and Language
url https://arxiv.org/abs/2502.13119