Safe Equilibrium Policy Optimization for Strategic Agent Policies
On the map: LLM agents and tool use → Reinforcement learning for LLM agents
Abstract (arXiv)
Language models fine-tuned with reinforcement learning typically optimize for task reward, ignoring multi-agent strategic structure. Because these agents condition on natural language game-state descriptions and emit actions through free-form generation, strategic failure modes -- exploiting weaker opponents, coordinating on harmful equilibria, and externalizing costs are inseparable from the language interface itself. We propose Safe Equilibrium Policy Optimization (sepo), a training objective that augments expected payoff with explicit penalties for exploitability, collusion risk, and externality cost. We implement sepo as a reward signal for Group Relative Policy Optimization (GRPO), applied to Gemma~4 E4B-it and Qwen~3.5-4B after supervised fine-tuning (SFT). Evaluated across five strategic domains: Iterated Prisoner's Dilemma, repeated auctions, two negotiation variants, and Kuhn Poker. sepo achieves zero exploit-pool advantage in Kuhn Poker for both models, outperforms the base model on safety in four domains, and corrects the over-cooperative behavior introduced by SFT. In negotiation, sepo achieves a positive-safety outcome and only the positive normalized relative advantage of any negotiation configuration. Ablation experiments confirm that per-rollout exploit computation is necessary: a shared constant penalty cancels in GRPO advantage normalization (constant control-variate property), producing zero gradient. To support further research in strategic safety for agents, we release our hrefhttps://anonymous.4open.science/r/sepo-2668/README.mdcode and SFT datasets.
Key facts. No citing papers in the map yet (data through 14 Oct 2026). Placed in Reinforcement learning for LLM agents, one of 16 directions in LLM agents and tool use. Builds on 23 of its 37 references that are in the map. First posted on arXiv 29 May 2026.
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