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

Xiaoqian Liu, Ke Wang, Yongbin Li, Yuchuan Wu, Wentao Ma, Aobo Kong, Fei Huang, Jianbin Jiao, Junge Zhang


Abstract
Large 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).
Anthology ID:
2025.acl-long.747
Volume:
Proceedings of the 63rd Annual Meeting of the Association for Computational Linguistics (Volume 1: Long Papers)
Month:
July
Year:
2025
Address:
Vienna, Austria
Editors:
Wanxiang Che, Joyce Nabende, Ekaterina Shutova, Mohammad Taher Pilehvar
Venue:
ACL
SIG:
Publisher:
Association for Computational Linguistics
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Pages:
15371–15396
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URL:
https://preview.aclanthology.org/ingestion-acl-25/2025.acl-long.747/
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Cite (ACL):
Xiaoqian Liu, Ke Wang, Yongbin Li, Yuchuan Wu, Wentao Ma, Aobo Kong, Fei Huang, Jianbin Jiao, and Junge Zhang. 2025. EPO: Explicit Policy Optimization for Strategic Reasoning in LLMs via Reinforcement Learning. In Proceedings of the 63rd Annual Meeting of the Association for Computational Linguistics (Volume 1: Long Papers), pages 15371–15396, Vienna, Austria. Association for Computational Linguistics.
Cite (Informal):
EPO: Explicit Policy Optimization for Strategic Reasoning in LLMs via Reinforcement Learning (Liu et al., ACL 2025)
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https://preview.aclanthology.org/ingestion-acl-25/2025.acl-long.747.pdf