Beyond Scalar Rewards: Dense Feedback for LLM Policy Synthesis in Sequential Social Dilemmas

We propose an LLM harness that generates code-based policy functions for multi-agent environments, evaluates them with self-play, and refines them using feedback from previous iterations. Following the recent line of work in feedback engineering (the design of which information signals are shown to the LLM during refinement), we compare sparse feedback (scalar reward only) with dense feedback (reward plus social metrics: efficiency, equality, sustainability, peace). In two Sequential Social Dilemmas (Gathering and Cleanup) and with two frontier LLMs (Claude Sonnet 4.6, Gemini 3.1 Pro), dense feedback improves over or matches sparse feedback on all metrics. We explain this asymmetry via feedback aliasing: when the scalar reward maps distinct failure modes into the same value (e.g., under- vs. over-cleaning), social metrics disambiguate and allow the LLM to diagnose which direction of improvement to take. We conclude that social metrics act as a coordination signal, leading to strategies such as Voronoi territory partitioning and adaptive cleaner schedules. Code at https://github.com/vicgalle/llm-policies-social-dilemmas.