Scaling Small Agents Through Strategy Auctions
Small language models are increasingly viewed as a promising, cost-effective approach to agentic AI, with proponents claiming they are sufficiently capable for agentic workflows. However, while smaller agents can closely match larger ones on simple tasks, it remains unclear how their performance scales with task complexity, when large models become necessary, and how to better leverage small agents for long-horizon workloads. In this work, we empirically show that small agents' performance fails to scale with task complexity on deep search and coding tasks, and we introduce Strategy Auctions for Workload Efficiency (SALE), an agent framework inspired by freelancer marketplaces. In SALE, agents bid with short strategic plans, which are scored by a systematic cost-value mechanism and refined via a shared auction memory, enabling per-task routing and continual self-improvement without training a separate router or running all models to completion. Across deep search and coding tasks of varying complexity, SALE reduces reliance on the largest agent by 53%, lowers overall cost by 35%, and consistently improves upon the largest agent's pass@1 with only a negligible overhead beyond executing the final trace. In contrast, established routers that rely on task descriptions either underperform the largest agent or fail to reduce cost -- often both -- underscoring their poor fit for agentic workflows. These results suggest that while small agents may be insufficient for complex workloads, they can be effectively "scaled up" through coordinated task allocation and test-time self-improvement. More broadly, they motivate a systems-level view of agentic AI in which performance gains come less from ever-larger individual models and more from market-inspired coordination mechanisms that organize heterogeneous agents into efficient, adaptive ecosystems.
6983723937bca54cd0587da1
Lisa Alazraki
claimed_verified
2026-02-06T18:56:05.135Z
638b828972d5e4aa0121de19
https://cdn-avatars.huggingface.co/v1/production/uploads/no-auth/CmmMUyzpm7WHB82uQ9cUz.png
Lisa Alazraki
LisaAlaz
user
LisaAlaz
6983723937bca54cd0587da2
William F. Shen
6983723937bca54cd0587da3
Yoram Bachrach
6983723937bca54cd0587da4
Akhil Mathur
Scaling Small Agents Through Strategy Auctions
Small language models are increasingly viewed as a promising, cost-effective approach to agentic AI, with proponents claiming they are sufficiently capable for agentic workflows. However, while smaller agents can closely match larger ones on simple tasks, it remains unclear how their performance scales with task complexity, when large models become necessary, and how to better leverage small agents for long-horizon workloads. In this work, we empirically show that small agents' performance fails to scale with task complexity on deep search and coding tasks, and we introduce Strategy Auctions for Workload Efficiency (SALE), an agent framework inspired by freelancer marketplaces. In SALE, agents bid with short strategic plans, which are scored by a systematic cost-value mechanism and refined via a shared auction memory, enabling per-task routing and continual self-improvement without training a separate router or running all models to completion. Across deep search and coding tasks of varying complexity, SALE reduces reliance on the largest agent by 53%, lowers overall cost by 35%, and consistently improves upon the largest agent's pass@1 with only a negligible overhead beyond executing the final trace. In contrast, established routers that rely on task descriptions either underperform the largest agent or fail to reduce cost -- often both -- underscoring their poor fit for agentic workflows. These results suggest that while small agents may be insufficient for complex workloads, they can be effectively "scaled up" through coordinated task allocation and test-time self-improvement. More broadly, they motivate a systems-level view of agentic AI in which performance gains come less from ever-larger individual models and more from market-inspired coordination mechanisms that organize heterogeneous agents into efficient, adaptive ecosystems.
Small language models struggle with complex tasks but can be effectively coordinated through a marketplace-inspired framework that reduces costs and improves performance through strategic bidding and self-improvement mechanisms.
small language models agentic AI deep search coding tasks Strategy Auctions for Workload Efficiency agent framework freelancer marketplaces strategic plans cost-value mechanism auction memory per-task routing continual self-improvement pass@1 task complexity workload efficiency