Mitigating Gambling-Like Risk-Taking Behaviors in Large Language Models: A Behavioral Economics Approach to AI Safety

Large Language Models (LLMs) exhibit systematic risk-taking behaviors analogous to those observed in gambling psychology, including overconfidence bias, loss-chasing tendencies, and probability misjudgment. Drawing from behavioral economics and prospect theory, we identify and formalize these "gambling-like" patterns where models sacrifice accuracy for high-reward outputs, exhibit escalating risk-taking after errors, and systematically miscalibrate uncertainty. We propose the Risk-Aware Response...