Strategic Bargaining in Multi-Buyer Markets: Reinforcement Learning from Verifiable Rewards for LLM Negotiations
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Abstract (arXiv)
Negotiation is a fundamental strategic interaction in management science, characterized by agents attempting to reach agreements while protecting private information, such as reservation costs and hidden valuations. A prevalent yet complex scenario involves a single seller negotiating concurrently with multiple buyers, each possessing heterogeneous, private budgets. In such settings, constrained by a limited number of communication turns, the seller must balance exploring the broader market to discover the highest valuation with concentrating sufficient turns on a single target buyer to secure the best possible outcome. Our analysis reveals a significant gap in standard Large Language Models (LLMs): while these models are linguistically proficient, they fail to act as effective economic decision-makers. Specifically, they exhibit a failure to explore the buyer pool, often fixating on the current highest bid rather than strategically investigating the market to discover latent high valuations. In this paper, we propose a specialized training recipe using Reinforcement Learning from Verifiable Rewards (RLVR). By anchoring the reward function to objective economic outcomes, the strategic balance between market discovery and surplus extraction emerges natively through the learning process. Our results demonstrate that the trained seller undergoes a multi-stage strategic evolution, learning to leverage price anchoring and strategic probing to identify more profitable counterparties. The agent extracts a substantially higher surplus than frontier models by both improving its persuasive bargaining skills and consistently closing deals with high-value buyers. Finally, we show that our seller strategies generalize robustly to unseen buyer negotiation styles and budget distributions.
Key facts. Cited by 4 papers in the map (data through 14 Oct 2026). Builds on 19 of its 70 references that are in the map. First posted on arXiv 7 Jul 2026.
Builds on
19 of 70 references.
References · 19
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7 more
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Citing papers per year: 2026: 4.
4 papers.
- 2026Robust Data-Collection Policy Learning for Low-Variance Online Policy Evaluationcited by 2
- 2026OR-Transformer: Scaling Real-Time Decision-Making to 1,000 Itemscited by 1
- 2026Pessimistic Minimax Learning for Public-Private Information Games under Unilateral Coveragecited by 0
- 2026Do Small Language Models Learn to Negotiate? A Controlled Scaling Study of RL-Trained Sellerscited by 0
- 2026Do Small Language Models Learn to Negotiate? A Controlled Scaling Study of RL-Trained Sellers5 Oct 2026
- 2026Pessimistic Minimax Learning for Public-Private Information Games under Unilateral Coverage4 Oct 2026
- 2026OR-Transformer: Scaling Real-Time Decision-Making to 1,000 Items1 Sep 2026
- 2026Robust Data-Collection Policy Learning for Low-Variance Online Policy Evaluation25 Aug 2026
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