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The Illusion of Thinking: Strengths and Limitations of Reasoning Models
Recent generations of frontier language models have introduced Large Reasoning Models (LRMs) that generate detailed thinking processes…
While these models demonstrate improved performance on reasoning benchmarks, their fundamental capabilities, scal- ing properties, and limitations remain insufficiently understood. In this work, we systematically investigate these gaps with the help of controllable puzzle environments that allow precise manipulation of composi- tional complexity while maintaining consistent logical structures. Moreover, they exhibit a counter- intuitive scaling limit: their reasoning effort increases with problem complexity up to a point, then declines despite having an adequate token budget.
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