EPO: Explicit Policy Optimization for Strategic Reasoning in LLMs via Reinforcement Learning

AbstractLarge Language Models (LLMs) have shown impressive reasoning capabilities in well-defined problems with clear solutions, such as mathematics and coding. However, they still struggle with complex real-world scenarios like business negotiations, which require strategic reasoning—an ability to navigate dynamic environments and align long-term goals amidst uncertainty.Existing methods for strategic reasoning face challenges in adaptability, scalability, and transferring strategies to new contexts.To address these issues, we propose explicit policy optimization (*EPO*) for strategic reasoning, featuring an LLM that provides strategies in open-ended action space and can be plugged into arbitrary LLM agents to motivate goal-directed behavior.To improve adaptability and policy transferability, we train the strategic reasoning model via multi-turn reinforcement learning (RL), utilizing process rewards and iterative self-play.Experiments across social and physical domains demonstrate *EPO*’s ability of long-term goal alignment through enhanced strategic reasoning, achieving state-of-the-art performance on social dialogue and web navigation tasks. Our findings reveal various collaborative reasoning mechanisms emergent in *EPO* and its effectiveness in generating novel strategies, underscoring its potential for strategic reasoning in real-world applications. Code and data are available at [https://github.com/lxqpku/EPO](https://github.com/lxqpku/EPO).