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reasoning economy

noun \ˈrēz-niŋ i-ˈkä-nə-mē\

also reasoning economics or reasoning efficiency

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Definition of reasoning economy

  1. : the study and optimization of how an AI system allocates tokens, computation, time, and money to reasoning so that additional thinking is used only when its expected benefit justifies its cost

    • The routing policy improved reasoning economy by sending routine questions to a small model and reserving deeper inference for uncertain cases.
    • The team measured reasoning economics across the whole security workflow instead of treating the shortest answer as the cheapest one.

Two meanings, one word

In everyday English

The careful management of a limited resource.

In AI

The study and optimization of how an AI system allocates tokens, computation, time, and money to reasoning so that additional thinking is used only when its expected…

Origin & history

first known use2025

The term was formalized as an AI research concept by the 2025 survey Harnessing the Reasoning Economy, which organized methods for balancing reasoning performance and computational budgets during post-training and inference. In 2026, Microsoft used reasoning economics to describe deciding where an additional unit of model reasoning would materially improve a vulnerability-research decision.

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Cite this entry

"Reasoning economy." AI Dictionary, Dadgogo, https://dadgogo.com/dictionary/reasoning-economy/. Accessed 8 Oct. 2026.

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