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Do LLMs Understand Sequential Structure? A Controlled Study of Inference and Generation

Large language models (LLMs) are increasingly used as interactive agents and simulators, yet it remains unclear whether they can recover latent sequential structure beyond surface action frequencies. This distinction is critical for behavioral simulation, where actions are often shaped by prior context rather than marginal frequencies alone. We study this question using controlled two-player Rock--Paper--Scissors interactions and a one-player stochastic n-gram continuation task. Across these experiments, we test whether LLMs can identify latent strategies, follow simple Markov rules, and sustain higher-order conditional dependencies. Our framework separates distribution matching from cond...

AuthorsJerry Wang, Zhengxiang Wang, Ting Yu Liu et al.
Primary categorycs.AI
Published4 October 2026
Last updated at source4 October 2026
cs.AI
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