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Preprint Aug 2026

LangBP: Language-Guided Reasoning and Acting for Joint Bidding and Pricing

Auto-bidding is a long-horizon sequential decision problem for maximizing conversion value under budget and key performance indicator (KPI) constraints. Recent work extends this task from bidding alone to joint bidding and pricing, where a policy controls bidding decisions and pricing corrections. Existing methods mainly rely on numerical trajectory modeling, which offers limited support for interpreting campaign context and expressing high-level strategies. Large language models (LLMs) can complement this paradigm with their reasoning capabilities. However, existing language-guided methods have two limitations. First, they condition actions on language strategies without modeling the corresponding state changes, making it difficult to distinguish errors in strategy understanding from errors in action generation. Second, different instructions can produce similar execution effects, leading to imbalanced policy updates across effects. We propose LangBP, a hierarchical framework for language-guided joint bidding and pricing. LangBP's Semantic Decision Transformer (S-DT) predicts target states from the instruction and the trajectory history, then recovers the joint action via inverse dynamics. We further propose Execution-Grouped Policy Optimization (EGPO), which scores candidate effects with a Context--Effect Verifier (CEV) and balances policy updates across effect groups. Experiments on AuctionNet show that LangBP outperforms strong baselines, and online A/B tests further demonstrate business gains in real-world deployment on a large-scale e-commerce platform.

Jian-Qing Ding, Chuan Yang, Linghui Meng et al. · 0 citations
Book Open access Jul 2026

Reasoning-Grounded Intent Injection for Generative Recommendation

Industrial generative recommendation systems operating over discrete Semantic IDs (SIDs) are largely behavior-driven, and thus struggle to proactively activate latent demand before explicit user signals emerge, leading to intent cold-start. To address this, we propose RIGER (Reasoning-grounded Intent injection for GE nerative Recommendation), a deployable two-stage framework that integrates offline large language model (LLM) reasoning into an online generative recommender under strict latency constraints. Offline, to ensure scalable deployment, we distill the latent-intent inference capability of a strong LLM into a lightweight forecasting model using an automated data curation pipeline---leveraging judge-guided prompt calibration and future-query-guided rejection filtering. Online, to bridge the representation mismatch between free-form textual intents and the discrete SID token space, predicted intents are converted into SID-native tokens through a behavior-grounded mapping and injected into the deployed decoder-only retrieval backbone. We further fine-tune the model with beam-aware GRPO, introducing a hierarchical intent-alignment exploration reward in SID space while preserving exploitation behavior through KL regularization. Offline evaluations demonstrate a substantial increase in intent-aligned density and diversity with only a marginal reduction in hindsight recall, indicating that RIGER effectively enhances proactive intent exploration while preserving its capability to exploit historical behaviors. In a large-scale e-commerce display advertising system, RIGER improves clicks by 1.6% and advertiser spend by 1.3%.

Xusong Chen, Peini Guo, Fang Liu et al. · 0 citations
Book Open access Jul 2026

DPEO: Dynamic Preference Evolution Optimization for Self-Evolving CTR Prediction

Click-through rate (CTR) prediction is a pivotal component in large-scale industrial systems. Historically, CTR prediction paradigms have been confined to monolithic architectures governed by a single-policy optimization process. However, such isolated learning paths lack the intrinsic evolutionary mechanisms necessary for optimal convergence. Without policy diversity and internal competition, models tend to get trapped in local optima as performance reaches saturation, hindering further breakthroughs in modeling capacity. In this paper, we propose DPEO (Dynamic Preference Evolution Optimization), a co-evolutionary framework that transforms CTR modeling into a dynamic policy contention task. DPEO decouples the monolithic architecture into dual sub-learners to induce policy diversity, constructing an internal preference landscape without external rewards. A performance-driven Role Arbiter then dynamically designates the superior sub-learner as the Reference Policy and the other sub-learner as the Target Policy per batch, driving continuous model evolution. Through an asymmetric gradient flow, the target policy is optimized to surpass the reference policy in both probability and logit spaces. This process drives a co-evolution, enabling the sub-learners to serve as alternating evolutionary benchmarks and 'self-evolve' toward the global optimum. Extensive experiments on public benchmarks and a massive industrial dataset with over 10 billion samples demonstrate that DPEO significantly outperforms state-of-the-art models.

Kun Yao, Congcong Liu, Ziheng Ni et al. · 0 citations

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