Iterative Hypothesis Generation for Scientific Discovery with Monte Carlo Nash Equilibrium Self-Refining Trees

Scientific hypothesis generation is a fundamentally challenging task in research, requiring the synthesis of novel and empirically grounded insights. Traditional approaches rely on human intuition and domain expertise, while purely large language model (LLM) based methods often struggle to produce hypotheses that are both innovative and reliable. To address these limitations, we propose the Monte Carlo Nash Equilibrium Self-Refine Tree (MC-NEST), a novel framework that integrates Monte Carlo Tree Search with Nash Equilibrium strategies to iteratively refine and validate hypotheses. MC-NEST dynamically balances exploration and exploitation through adaptive sampling strategies, which prioritize high-potential hypotheses while maintaining diversity in the search space. We demonstrate the effectiveness of MC-NEST through comprehensive experiments across multiple domains, including biomedicine, social science, and computer science. MC-NEST achieves average scores of 2.65, 2.74, and 2.80 (on a 1-3 scale) for novelty, clarity, significance, and verifiability metrics on the social science, computer science, and biomedicine datasets, respectively, outperforming state-of-the-art prompt-based methods, which achieve 2.36, 2.51, and 2.52 on the same datasets. These results underscore MC-NEST's ability to generate high-quality, empirically grounded hypotheses across diverse domains. Furthermore, MC-NEST facilitates structured human-AI collaboration, ensuring that LLMs augment human creativity rather than replace it. By addressing key challenges such as iterative refinement and the exploration-exploitation balance, MC-NEST sets a new benchmark in automated hypothesis generation. Additionally, MC-NEST's ethical design enables responsible AI use, emphasizing transparency and human supervision in hypothesis generation.