# KTO: Model Alignment as Prospect Theoretic Optimization

arXiv: https://arxiv.org/abs/2402.01306 · HTML: https://mlsanity.com/paper/2402.01306/

## Key facts

- Cited by 264 papers in the map (data through 14 Oct 2026).
- Placed in Reinforcement learning for reasoning, one of 17 directions in LLM reasoning.
- Builds on 40 of its 57 references that are in the map.
- First posted on arXiv 2 Feb 2024.

## Placed in

- LLM reasoning / [Reinforcement learning for reasoning](https://mlsanity.com/lr/reinforcement-learning-for-reasoning/)
- LLM alignment / RLHF / preference optimisation / [LLM preference optimization methods](https://mlsanity.com/alignment/llm-preference-optimization-methods/)

## Builds on (most cited first, 30 of 40)

- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [LLaMA: Open and Efficient Foundation Language Models](https://mlsanity.com/paper/2302.13971/) (2023)
- [Training Verifiers to Solve Math Word Problems](https://mlsanity.com/paper/2110.14168/) (2021)
- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
- [Evaluating Large Language Models Trained on Code](https://mlsanity.com/paper/2107.03374/) (2021)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Measuring Massive Multitask Language Understanding](https://mlsanity.com/paper/2009.03300/) (2020)
- [Deep reinforcement learning from human preferences](https://mlsanity.com/paper/1706.03741/) (2017)
- [Training a Helpful and Harmless Assistant with Reinforcement Learning from Human Feedback](https://mlsanity.com/paper/2204.05862/) (2022)
- [FlashAttention: Fast and Memory-Efficient Exact Attention with IO-Awareness](https://mlsanity.com/paper/2205.14135/) (2022)
- [Mistral 7B](https://mlsanity.com/paper/2310.06825/) (2023)
- [Learning to summarize from human feedback](https://mlsanity.com/paper/2009.01325/) (2020)
- [Fine-Tuning Language Models from Human Preferences](https://mlsanity.com/paper/1909.08593/) (2019)
- [Beyond the Imitation Game: Quantifying and extrapolating the capabilities of language models](https://mlsanity.com/paper/2206.04615/) (2022)
- [Pythia: A Suite for Analyzing Large Language Models Across Training and Scaling](https://mlsanity.com/paper/2304.01373/) (2023)
- [Neural Collaborative Filtering](https://mlsanity.com/paper/1708.05031/) (2017)
- [A General Theoretical Paradigm to Understand Learning from Human Preferences](https://mlsanity.com/paper/2310.12036/) (2023)
- [Advantage-Weighted Regression: Simple and Scalable Off-Policy Reinforcement Learning](https://mlsanity.com/paper/1910.00177/) (2019)
- [Open Problems and Fundamental Limitations of Reinforcement Learning from Human Feedback](https://mlsanity.com/paper/2307.15217/) (2023)
- [Red Teaming Language Models to Reduce Harms: Methods, Scaling Behaviors, and Lessons Learned](https://mlsanity.com/paper/2209.07858/) (2022)
- [OpenAssistant Conversations -- Democratizing Large Language Model Alignment](https://mlsanity.com/paper/2304.07327/) (2023)
- [Self-Rewarding Language Models](https://mlsanity.com/paper/2401.10020/) (2024)
- [Self-Play Fine-Tuning Converts Weak Language Models to Strong Language Models](https://mlsanity.com/paper/2401.01335/) (2024)
- [Neural Text Generation with Unlikelihood Training](https://mlsanity.com/paper/1908.04319/) (2019)
- [SLiC-HF: Sequence Likelihood Calibration with Human Feedback](https://mlsanity.com/paper/2305.10425/) (2023)
- [Contrastive Preference Optimization: Pushing the Boundaries of LLM Performance in Machine Translation](https://mlsanity.com/paper/2401.08417/) (2024)
- [Understanding Dataset Difficulty with V-Usable Information](https://mlsanity.com/paper/2110.08420/) (2021)
- [Pretraining Language Models with Human Preferences](https://mlsanity.com/paper/2302.08582/) (2023)
- [Quark: Controllable Text Generation with Reinforced Unlearning](https://mlsanity.com/paper/2205.13636/) (2022)

## Built on by (most cited first, 30 of 264)

- [Towards Reasoning Era: A Survey of Long Chain-of-Thought for Reasoning Large Language Models](https://mlsanity.com/paper/2503.09567/) (2025)
- [OLMoE: Open Mixture-of-Experts Language Models](https://mlsanity.com/paper/2409.02060/) (2024)
- [Generative Representational Instruction Tuning](https://mlsanity.com/paper/2402.09906/) (2024)
- [Simplicity Prevails: Rethinking Negative Preference Optimization for LLM Unlearning](https://mlsanity.com/paper/2410.07163/) (2024)
- [The PRISM Alignment Dataset: What Participatory, Representative and Individualised Human Feedback Reveals About the Subjective and Multicultural Alignment of Large Language Models](https://mlsanity.com/paper/2404.16019/) (2024)
- [Advances and Challenges in Foundation Agents: From Brain-Inspired Intelligence to Evolutionary, Collaborative, and Safe Systems](https://mlsanity.com/paper/2504.01990/) (2025)
- [A Survey of Frontiers in LLM Reasoning: Inference Scaling, Learning to Reason, and Agentic Systems](https://mlsanity.com/paper/2504.09037/) (2025)
- [mDPO: Conditional Preference Optimization for Multimodal Large Language Models](https://mlsanity.com/paper/2406.11839/) (2024)
- [Harmful Fine-tuning Attacks and Defenses for Large Language Models: A Survey](https://mlsanity.com/paper/2409.18169/) (2024)
- [Safety at Scale: A Comprehensive Survey of Large Model and Agent Safety](https://mlsanity.com/paper/2502.05206/) (2025)
- [Reinforcement Learning from Human Feedback](https://mlsanity.com/paper/2504.12501/) (2025)
- [Rethinking Bradley-Terry Models in Preference-Based Reward Modeling: Foundations, Theory, and Alternatives](https://mlsanity.com/paper/2411.04991/) (2024)
- [Synthetic Data Generation & Multi-Step RL for Reasoning & Tool Use](https://mlsanity.com/paper/2504.04736/) (2025)
- [Solver-Informed RL: Grounding Large Language Models for Authentic Optimization Modeling](https://mlsanity.com/paper/2505.11792/) (2025)
- [Improving LLM Reasoning through Scaling Inference Computation with Collaborative Verification](https://mlsanity.com/paper/2410.05318/) (2024)
- [Multi-LogiEval: Towards Evaluating Multi-Step Logical Reasoning Ability of Large Language Models](https://mlsanity.com/paper/2406.17169/) (2024)
- [Enhancing LLM Reasoning with Iterative DPO: A Comprehensive Empirical Investigation](https://mlsanity.com/paper/2503.12854/) (2025)
- [Step-Controlled DPO: Leveraging Stepwise Error for Enhanced Mathematical Reasoning](https://mlsanity.com/paper/2407.00782/) (2024)
- [Self-Explore: Enhancing Mathematical Reasoning in Language Models with Fine-grained Rewards](https://mlsanity.com/paper/2404.10346/) (2024)
- [From 1,000,000 Users to Every User: Scaling Up Personalized Preference for User-level Alignment](https://mlsanity.com/paper/2503.15463/) (2025)
- [On the Design of KL-Regularized Policy Gradient Algorithms for LLM Reasoning](https://mlsanity.com/paper/2505.17508/) (2025)
- [Re-Align: Aligning Vision Language Models via Retrieval-Augmented Direct Preference Optimization](https://mlsanity.com/paper/2502.13146/) (2025)
- [Step Back to Leap Forward: Self-Backtracking for Boosting Reasoning of Language Models](https://mlsanity.com/paper/2502.04404/) (2025)
- [Reinforce LLM Reasoning through Multi-Agent Reflection](https://mlsanity.com/paper/2506.08379/) (2025)
- [Online Preference Alignment for Language Models via Count-based Exploration](https://mlsanity.com/paper/2501.12735/) (2025)
- [SaRO: Enhancing LLM Safety through Reasoning-based Alignment](https://mlsanity.com/paper/2504.09420/) (2025)
- [SimPER: A Minimalist Approach to Preference Alignment without Hyperparameters](https://mlsanity.com/paper/2502.00883/) (2025)
- [Language Models that Think, Chat Better](https://mlsanity.com/paper/2509.20357/) (2025)
- [Preference Tuning with Human Feedback on Language, Speech, and Vision Tasks: A Survey](https://mlsanity.com/paper/2409.11564/) (2024)
- [Does RLHF Scale? Exploring the Impacts From Data, Model, and Method](https://mlsanity.com/paper/2412.06000/) (2024)

## Abstract (arXiv)

Kahneman & Tversky's textitprospect theory tells us that humans perceive random variables in a biased but well-defined manner (1992); for example, humans are famously loss-averse. We show that objectives for aligning LLMs with human feedback implicitly incorporate many of these biases -- the success of these objectives (e.g., DPO) over cross-entropy minimization can partly be ascribed to them belonging to a family of loss functions that we call textithuman-aware losses (HALOs). However, the utility functions these methods attribute to humans still differ from those in the prospect theory literature. Using a Kahneman-Tversky model of human utility, we propose a HALO that directly maximizes the utility of generations instead of maximizing the log-likelihood of preferences, as current methods do. We call this approach KTO, and it matches or exceeds the performance of preference-based methods at scales from 1B to 30B, despite only learning from a binary signal of whether an output is desirable. More broadly, our work suggests that there is no one HALO that is universally superior; the best loss depends on the inductive biases most appropriate for a given setting, an oft-overlooked consideration.