Bayesian Wind Tunnels for Model Selection

arXiv:2607.19379v1 Announce Type: new Abstract: Prior work has shown that transformers can perform exact Bayesian filtering within a fixed hypothesis class. Can they also perform Bayesian model selection -- identifying the correct hypothesis class from data? We introduce model-selection Bayesian wind tunnels: controlled environments where ground-truth posteriors over hypothesis classes are available in closed form. Using fixed-point-free involutions -- whose defining property f(f(x))=x is purely relational -- a 2.8M-parameter transformer achieves 0.01-bit entropy agreement with the Bayesian optimum (3 seeds), with both integer tokens and opaque symbols whose meanings change every episode. This extends to non-nested comparisons: involutions vs. 3-cycles (where neither class is a subset of the other) achieve class-posterior MAE under 0.001, demonstrating genuine model selection beyond simplicity/subset bias. We then identify a sharp perceptual access condition: when the discriminative statistic requires arithmetic -- modular addition (rotations) or multiplication (f(x)=cx mod p) -- model selection succeeds with integer tokens but fails completely with opaque symbols, and this boundary persists under 112x scaling (2.8M to 316M parameters). A stationarity control confirms the operative factor: opaque tokens with a fixed relabeling succeed (0.009-bit MAE), showing that stable semantics, not integer identity, enable circuit compilation. Header subtask diagnostics localize the failure to the composition of header inversion with arithmetic rather than header parsing itself. Probing frontier LLMs on the same tasks shows qualitative Bayesian behavior but a large calibration gap (~55x), measured through lossy probes and therefore directional rather than exact.