arXiv:2603.29112v1 Announce Type: new Abstract: We introduce GISTBench, a benchmark for evaluating Large Language Models' (LLMs) ability to understand users from their interaction histories in recommendation systems. Unlike traditional RecSys benchmarks that focus on item prediction accuracy, our benchmark evaluates how well LLMs can extract and verify user interests from engagement data. We propose two novel metric families: Interest Groundedness (IG), decomposed into precision and recall components to separately penalize hallucinated interest categories and reward coverage, and Interest Specificity (IS), which assesses the distinctiveness of verified LLM-predicted user profiles. We release a synthetic dataset constructed on real user interactions on a global short-form video platform. Our dataset contains both implicit and explicit engagement signals and rich textual descriptions. We validate our dataset fidelity against user surveys, and evaluate eight open-weight LLMs spanning 7B to 120B parameters. Our findings reveal performance bottlenecks in current LLMs, particularly their limited ability to accurately count and attribute engagement signals across heterogeneous interaction types.

arXiv:2511.12876v3 Announce Type: replace Abstract: Economic decision-making depends not only on structured signals such as prices and taxes, but also on unstructured language, including peer dialogue and media narratives. While multi-agent reinforcement learning (MARL) has shown promise in optimizing economic decisions, it struggles with the semantic ambiguity and contextual richness of language. We propose LAMP (Language-Augmented Multi-Agent Policy), a framework that integrates language into economic decision-making and narrows the gap to real-world settings. LAMP follows a Think-Speak-Decide pipeline: (1) Think interprets numerical observations to extract short-term shocks and long-term trends, caching high-value reasoning trajectories; (2) Speak crafts and exchanges strategic messages based on reasoning, updating beliefs by parsing peer communications; and (3) Decide fuses numerical data, reasoning, and reflections into a MARL policy to optimize language-augmented decision-making. Experiments in economic simulation show that LAMP outperforms both MARL and LLM-only baselines in cumulative return (+63.5%, +34.0%), robustness (+18.8%, +59.4%), and interpretability. These results demonstrate the potential of language-augmented policies to deliver more effective and robust economic strategies.

arXiv:2602.05165v3 Announce Type: replace-cross Abstract: Reinforcement Learning with Verifiable Rewards (RLVR) has proven effective for enhancing the reasoning capabilities of Large Language Models (LLMs). However, dominant approaches like Group Relative Policy Optimization (GRPO) face critical stability challenges: they suffer from high estimator variance under computational constraints (small group sizes) and vanishing gradient signals in saturated failure regimes where all responses yield identical zero rewards. To address this, we propose Empirical Bayes Policy Optimization (EBPO), a novel framework that regularizes local group-based baselines by borrowing strength from the policy's accumulated global statistics. Instead of estimating baselines in isolation, EBPO employs a shrinkage estimator that dynamically balances local group statistics with a global prior updated via Welford's online algorithm. Theoretically, we demonstrate that EBPO guarantees strictly lower Mean Squared Error (MSE), bounded entropy decay, and non-vanishing penalty signals in failure scenarios compared to GRPO. Empirically, EBPO consistently outperforms GRPO and other established baselines across diverse benchmarks, including AIME and OlympiadBench. Notably, EBPO exhibits superior training stability, achieving high-performance gains even with small group sizes, and benefits significantly from difficulty-stratified curriculum learning.