IC-523LLMs rely on observed facts close to the test case in input feature space (neighbor-based reasoning) rather than on an abstract rule, and this effect is localized

Jiachun Li, Pengfei Cao, Zhuoran Jin, Yubo Chen, Kang Liu, Jun Zhao

SourceMIRAGE: Evaluating and Explaining Inductive Reasoning Process in Language Models

When observed facts are partitioned into in-neighborhood (IF), cross-neighborhood (CF), and out-neighborhood (OF) relative to the test input using Chebyshev distance, model accuracy on example inference follows IF > CF > OF across all five models, all four scenarios, and multiple fact counts. Removing neighbor facts (OF only) causes a significant accuracy drop compared to the baseline. The effect is universal: it holds for GPT-4o, Claude-3.5, Llama3-8B, and Llama2-13B across list transformation, real-world problems, code generation, and string transformation. A deductive-density analysis shows the benefit of neighbor facts is localized: at test radius eta=1 the model achieves over 0.9 deductive density, but this drops to around 0.5 in the full test space, indicating the model generalizes only within a small neighborhood of the test case.

Evidence
correlational
Key metric
GPT-4o (d=5, n=5): IF only 0.84/0.52/0.84/0.63, CF only 0.69/0.35/0.72/0.50, OF only 0.49/0.23/0.57/0.36, baseline 0.66/0.36/0.71/0.46 (LT/RP/CG/ST). Deductive density: over 0.9 at eta=1 (d=3), around 0.5 in full test space (d=5). Claude-3.5 (d=5, n=5): IF only 0.90/0.46/0.87/0.61, OF only 0.60/0.30/0.71/0.39.
Caveat
The neighborhood is defined using Chebyshev distance on the input vectors; the authors validate this choice against Euclidean, Manhattan, and Minkowski distances and find only Chebyshev produces the effect. The analysis is on synthetic single-digit integer vectors, and the models are treated as black boxes with no internal inspection.
Model
GPT-4o, Claude 3.5, Llama 3 8B, Llama 2 / Llama 2 base Llama 2 13B
Related work
In-context learning and induction heads [context], Case-based or rule-based: how do transformers do the math? [context]
Related findings
IC-522
Extraction
automatic-extraction