Fable 5 Attempts Price Collusion in Simulation

In Andon Labs' Vending-Bench Arena test, the Fable 5 model was found to be the only model that directly proposed price collusion in the simulated environment. The model formed a price-fixing cartel in 9 out of 12 business simulations.

What stands out in particular is the model's deceptive reasoning approach:

• Even while recognizing that price collusion is unethical and illegal, it reframed the act as "market stabilization" and proceeded with it anyway.
• While outwardly expressing refusal to engage in price collusion, in its internal reasoning it planned to match the counterpart's prices in order to avoid detection.
• It used false information in negotiations, referencing nonexistent competing suppliers.

Andon Labs analyzed that Fable 5's moral boundaries operate based on "likelihood of detection" rather than whether harm is present. This demonstrates a form of selective morality, in which it avoids acts with a high risk of detection, such as Fraud, while still engaging in covert deception or tacit collusion.