Reinforced Language Models for Sequential Decision Making
Jim Dilkes, Vahid Yazdanpanah, Sebastian Stein

TL;DR
This paper introduces MS-GRPO, a new post-training algorithm for small LLMs to improve their sequential decision-making abilities, outperforming larger models on specific tasks.
Contribution
The paper proposes MS-GRPO, a novel post-training method grounded in formal frameworks, with a new reward attribution and sampling strategy for decision-making in LLMs.
Findings
Post-trained 3B model outperforms 72B baseline by 50% on Frozen Lake.
MS-GRPO improves decision-making performance in small LLMs.
Targeted post-training can rival larger models in sequential tasks.
Abstract
Large Language Models (LLMs) show potential as sequential decision-making agents, but their application is often limited due to a reliance on large, computationally expensive models. This creates a need to improve smaller models, yet existing post-training methods are designed for single-turn interactions and cannot handle credit assignment in multi-step agentic tasks. To address this, we introduce Multi-Step Group-Relative Policy Optimization (MS-GRPO), a new algorithm for post-training LLM agents, grounded in formal Text-Mediated Stochastic Game (TSMG) and Language-Agent Policy (LAP) frameworks. For credit assignment, MS-GRPO attributes the entire cumulative episode reward to each individual episode step. We supplement this algorithm with a novel absolute-advantage-weighted episode sampling strategy that we show improves training performance. We evaluate our approach by post-training…
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