Cost-Effective Communication: An Auction-based Method for Language Agent Interaction

arXiv cs.AI / 4/27/2026

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Key Points

  • Large-language-model multi-agent systems often waste tokens through inefficient “free-for-all” communication, causing high costs and poor signal-to-noise ratios.
  • The paper argues that the inefficiency stems from a lack of resource rationality—treating bandwidth as “free” ignores scarcity and drives unnecessary expense.
  • It proposes DALA (Dynamic Auction-based Language Agent), which models inter-agent communication as a centralized auction where agents bid for the right to speak based on expected message value density.
  • Experiments across seven reasoning benchmarks report state-of-the-art results (e.g., 84.32% on MMLU and 91.21% pass@1 on HumanEval) while using only 6.25 million tokens.
  • The authors find that DALA learns “strategic silence,” dynamically shifting from verbosity to silence as communication resources become constrained.

Abstract

Multi-agent systems (MAS) built on large language models (LLMs) often suffer from inefficient "free-for-all" communication, leading to exponential token costs and low signal-to-noise ratios that hinder their practical deployment. We challenge the notion that more communication is always beneficial, hypothesizing instead that the core issue is the absence of resource rationality. We argue that "free" communication, by ignoring the principle of scarcity, inherently breeds inefficiency and unnecessary expenses. To address this, we introduce the Dynamic Auction-based Language Agent (DALA), a novel framework that treats communication bandwidth as a scarce and tradable resource. Specifically, our DALA regards inter-agent communication as a centralized auction, where agents learn to bid for the opportunity to speak based on the predicted value density of their messages. Thus, our DALA intrinsically encourages agents to produce concise, informative messages while filtering out low-value communication. Extensive and comprehensive experiments demonstrate that our economically-driven DALA achieves new state-of-the-art performance across seven challenging reasoning benchmarks, including 84.32% on MMLU and a 91.21% pass@1 rate on HumanEval. Note that this is accomplished with remarkable efficiency, i.e., our DALA uses only 6.25 million tokens, a fraction of the resources consumed by current state-of-the-art methods on GSM8K. Further analysis reveals that our DALA cultivates the emergent skill of strategic silence, effectively adapting its communication strategies from verbosity to silence in a dynamical manner via resource constraints. Our code and updates are available at https://github.com/waltstephen/Cost-Effective-Communication.