Resource Rationality for Agents: Optimal Decisions Across Tokens, Tool Calls, and Latency
Agent decision-making under resource constraints is bounded rationality reborn: Rational Metareasoning uses VOC rewards to save 20-37% of tokens, BATS proves that adding budget without budget awareness is futile, FrugalGPT cascades cut costs by up to 98%, and Speculative Actions reduce latency by 20%. The three constraints ultimately converge into a single Pareto curve, and the overarching trend is moving from humans tuning knobs to models making resource-rational decisions on their own.