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Dutch Books for Language Models

Author

Listed:
  • Isaiah Andrews
  • Suproteem Sarkar

Abstract

People increasingly use language models to support life decisions. Many such decisions involve a probabilistic forecast: How likely is a major life event, a natural disaster, or an economic outcome? Users of language models may implicitly trust that these forecasts fall out of a coherent world model. In this paper, we evaluate the coherence of language model probabilistic forecasts through a procedure that builds on a theorem due to de Finetti. We elicit forecasts from language models across events generated from stock returns data. We then use linear programs to compute the largest Dutch-book profit - the profit an arbitrageur could guarantee by betting against model-generated probabilities - which we use as a measure of incoherence. Our procedure does not require outcome labels, so we can evaluate coherence even in settings where outcomes are not observed or have not yet resolved. We find substantial evidence of incoherence in language model forecasts. Such incoherence increases when there are richer logical relationships between events, and irrelevant contextual details can increase incoherence by an order of magnitude. We conclude by discussing how alternative training strategies may improve probabilistic coherence.

Suggested Citation

  • Isaiah Andrews & Suproteem Sarkar, 2026. "Dutch Books for Language Models," Papers 2609.02797, arXiv.org.
  • Handle: RePEc:arx:papers:2609.02797
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    File URL: https://arxiv.org/pdf/2609.02797
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    References listed on IDEAS

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    1. Isaiah Andrews, 2026. "Revealed Rationality: Label-Free Evaluation and Regularization from Representation Theorems," Papers 2608.05015, arXiv.org.
    2. Pu Cheng & Juncheng Liu & Yunshen Long, 2026. "PolyBench: Benchmarking LLM Forecasting and Trading Capabilities on Live Prediction Market Data," Papers 2604.14199, arXiv.org.
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    Cited by:

    1. Alex Smolin & Bryan Wilder, 2026. "Bayesian Intelligence from the Outside," Papers 2609.14724, arXiv.org.

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