procure-rl / EXPLANATION.md
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ProcureRL: A Deep Dive

Table of Contents

  1. What is ProcureRL?
  2. Why Does This Exist?
  3. The Big Picture Architecture
  4. The Three Tasks
  5. Data Models: What's Floating Around
  6. The Scripted Opponent System
  7. The Grading System
  8. The Environment Core
  9. The Server API
  10. The Inference Script
  11. End-to-End Example
  12. Docker Deployment
  13. Calibration and Testing

What is ProcureRL?

ProcureRL is an OpenEnv-compliant Reinforcement Learning environment where an LLM (Large Language Model) agent learns to negotiate procurement deals against scripted supplier opponents.

In simpler terms: it's a training ground for AI to practice negotiation β€” like a flight simulator, but for procurement conversations.

The Core Innovation: Language-Sensitive Opponent

What makes ProcureRL special is that the opponent's behavior responds to the quality of the agent's natural language, not just the prices offered. This means:

  • An agent that outputs aggressive or low-effort language gets a tough, unyielding opponent
  • An agent that outputs collaborative, professional language gets a more cooperative, flexible opponent

The language IS the policy β€” not just the action space. This makes LLM genuinely required, not incidental.


Why Does This Exist?

Real-world procurement negotiation is:

  • Sequential β€” one decision affects the next
  • Hidden utility β€” the opponent's real priorities are not revealed
  • Language-dependent β€” how you say things matters as much as what you offer
  • High-stakes β€” Walmart deployed AI (Pactum) for exactly this, 90% of CPOs adopting AI negotiation in 2025

Traditional rule-based negotiation tools are limited. An RL-trained LLM policy can learn to navigate this complexity in ways that static rules cannot.


The Big Picture Architecture

β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚                         ProcureRL System                        β”‚
β”œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€
β”‚                                                                 β”‚
β”‚  β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”    β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”                  β”‚
β”‚  β”‚   LLM Agent      │───▢│  Environment     β”‚                  β”‚
β”‚  β”‚   (inference.py)  β”‚    β”‚  (Procure_RL_    β”‚                  β”‚
β”‚  β”‚                   β”‚    β”‚   environment.py)β”‚                  β”‚
β”‚  β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜    β””β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜                  β”‚
β”‚                                    β”‚                            β”‚
β”‚                                    β–Ό                            β”‚
β”‚                          β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”                  β”‚
β”‚                          β”‚  Scripted         β”‚                  β”‚
β”‚                          β”‚  Opponent         β”‚                  β”‚
β”‚                          β”‚  (opponent.py)    β”‚                  β”‚
β”‚                          β””β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜                  β”‚
β”‚                                    β”‚                            β”‚
β”‚                                    β–Ό                            β”‚
β”‚                          β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”                  β”‚
β”‚                          β”‚  Graders         β”‚                  β”‚
β”‚                          β”‚  (graders.py)     β”‚                  β”‚
β”‚                          β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜                  β”‚
β”‚                                                                 β”‚
β”‚  β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”    β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”                  β”‚
β”‚  β”‚  Server API      β”‚    β”‚  OpenEnv.yaml    β”‚                  β”‚
β”‚  β”‚  (server/app.py)  β”‚    β”‚  (manifest)       β”‚                  β”‚
β”‚  β””β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜    β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜                  β”‚
β”‚           β”‚                                                     β”‚
β”‚           β–Ό                                                     β”‚
β”‚  β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”                                         β”‚
β”‚  β”‚  Docker Container │◀── HF Spaces Deployment                β”‚
β”‚  β”‚  (port 7860)       β”‚                                        β”‚
β”‚  β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜                                         β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜

The system is designed so that:

  1. Environment is deterministic and reproducible (seeded RNG)
  2. Opponent responds to language quality (via rapport system)
  3. Graders produce bounded [0.0, 1.0] scores
  4. Server exposes everything over HTTP for OpenEnv compliance
  5. Inference runs a baseline LLM agent against the environment

The Three Tasks

ProcureRL includes three tasks of increasing difficulty:

Task 1: single_issue (Easy)

Scenario: Software license renewal. Price only.

Buyer Target: $36,000
Seller Opens: ~$52,000 (varies by seed)
Seller Floor: ~$44,000 (varies by seed)
Max Rounds: 6
Opponent Persona: Cooperative

The agent must negotiate the price down from opening to target. The cooperative opponent starts friendly and remains fairly flexible.

Example Grading:

  • Deal at $38K in round 2: ~0.85 score
  • Deal at $44K in round 6: ~0.35 score
  • No deal: 0.0 score

Task 2: multi_issue (Medium)

Scenario: Enterprise software negotiation with price AND payment terms.

Issues: price ($40K-$58K) + payment_days (30-90)
Opponent Persona: Cash Flow Stressed
  β†’ Cares more about getting paid quickly (payment_weight: 0.65)
  β†’ Cares less about final price (price_weight: 0.35)
Max Rounds: 8

The Strategic Opportunity: If the agent offers Net-30 or Net-45 payment terms, the opponent becomes more flexible on price. A naive agent treats both issues equally and scores low. A smart agent bundles payment speed with price negotiation.

Example Grading:

  • Price $42K + Net-30 payment: ~0.60 score
  • Price $42K + Net-90 payment: ~0.35 score
  • No deal: 0.0 score

Task 3: adversarial (Hard)

Scenario: Large contract with three issues β€” price, payment, and support hours.

Issues: price + payment_days + support_hours
Opponent Persona: Aggressive Anchor
  β†’ Opens at ceiling on all issues
  β†’ Hardens position if agent makes consecutive concessions
  β†’ Rapport-sensitive but requires consistent collaborative framing
Max Rounds: 10
Survival Floor: 0.15 (completing any deal gets at least 0.15)

The Challenge: If the agent concedes on price in 2+ consecutive rounds, the opponent recognizes this pattern and becomes much harder to negotiate with. The agent must resist anchoring, break consecutive concession patterns, and maintain collaborative tone under pressure.

Example Grading:

  • Strategic deal with no consecutive concessions: ~0.50 score
  • Same deal but with consecutive concession pattern: ~0.40 score
  • Survival deal (just complete): 0.15 score

Data Models: What's Floating Around

The system uses three Pydantic models defined in models.py:

NegotiationAction

What the agent sends to the environment:

class NegotiationAction(BaseModel):
    move_type: str           # "make_offer" | "accept" | "reject" | "bundle"
    terms: Dict[str, Any]    # {"price": 42000, "payment_days": 45}
    message: str = ""        # Natural language β€” affects opponent rapport!

Important: The message field is not just flavor text. It directly affects opponent behavior through the rapport system.

NegotiationObservation

What the environment sends back to the agent after each step:

class NegotiationObservation(BaseModel):
    task_id: str                           # Which task we're running
    round_number: int                      # Current round (0 to max_rounds)
    max_rounds: int                        # Task's round limit
    supplier_message: str                  # Opponent's latest message
    current_offer: Dict[str, Any]          # Terms currently on the table
    last_4_exchanges: List[Dict]           # Recent conversation history
    buyer_constraints: Dict[str, Any]      # Agent's targets and limits
    rapport_hint: str                       # "positive" | "neutral" | "negative"
    done: bool                             # Is episode finished?
    reward: Optional[float] = None          # Reward (only on done)
    metadata: Dict[str, Any] = Field(...)  # Extra info (deal_price, errors)

NegotiationState

The environment's internal state (accessible via env.state):

class NegotiationState(BaseModel):
    task_id: str = ""
    episode_id: str = ""
    round_number: int = 0
    rapport_score: float = 0.5              # 0.0 to 1.0, starts neutral
    consecutive_concessions: int = 0        # Tracks concession patterns
    deal_reached: bool = False
    final_terms: Optional[Dict] = None       # Set when episode ends
    cumulative_reward: float = 0.0

The Scripted Opponent System

The opponent is implemented in opponent.py as the ScriptedPersonaOpponent class.

The Rapport System (Language Sensitivity)

The key mechanism is rapport β€” a score from 0.0 to 1.0 that changes based on the agent's language quality.

Collaborative Signals (increase rapport):

COLLABORATIVE_SIGNALS = [
    "understand", "partnership", "mutual", "together", "value",
    "appreciate", "flexible", "work with", "long-term", "relationship",
    "reasonable", "fair", "both", "solution"
]

Aggressive Signals (decrease rapport):

AGGRESSIVE_SIGNALS = [
    "demand", "require", "final offer", "unacceptable", "must",
    "non-negotiable", "take it or leave", "bottom line", "ultimatum",
    "insist", "refuse", "absolutely not"
]

How it works:

def update_rapport(self, agent_message: str) -> None:
    msg_lower = agent_message.lower()
    delta = 0.0
    delta += sum(0.08 for w in COLLABORATIVE_SIGNALS if w in msg_lower)
    delta -= sum(0.08 for w in AGGRESSIVE_SIGNALS if w in msg_lower)
    delta = max(-0.20, min(0.20, delta))  # Cap per-round change
    self.rapport = max(0.0, min(1.0, self.rapport + delta))

Every message the agent sends adjusts rapport by Β±0.08 per keyword detected, capped at Β±0.20 per round.

Concession Rate: How Fast the Opponent Moves

Rapport directly modifies the opponent's concession rate:

def get_concession_rate(self) -> float:
    base_rates = {
        "cooperative": 0.05,        # 5% per round base
        "cash_flow_stressed": 0.07,
        "aggressive_anchor": 0.04,
    }
    base = base_rates[self.persona]
    modifier = (self.rapport - 0.5) * base  # +/- 50% of base
    return max(0.01, base + modifier)

Example: Cooperative opponent with high rapport (0.8) concedes at 0.05 + (0.8 - 0.5) Γ— 0.05 = 7.5% per round. With low rapport (0.2), concedes at 0.05 + (0.2 - 0.5) Γ— 0.05 = 2.5% per round.

Three Personas

1. Cooperative (single_issue)

  • Friendly, understanding tone
  • 5% base concession rate, highly sensitive to rapport
  • Accepts early if price is above floor and round β‰₯ 2

2. Cash Flow Stressed (multi_issue)

  • Cares about payment timing more than price
  • 7% base concession rate, moderate rapport sensitivity
  • Acceptance requires payment_days ≀ 45
  • Comments on payment timing in responses

3. Aggressive Anchor (adversarial)

  • Opens at ceiling, hardens with pressure
  • 4% base concession rate (least flexible)
  • Penalizes consecutive concessions β€” if agent concedes 2+ rounds in a row, concession rate drops to 40% of normal
  • Uses "hardening" templates when cornered

Opponent Response Flow

def respond(self, agent_message, agent_terms, round_number, consecutive_concessions):
    # 1. Update rapport based on agent's language
    self.update_rapport(agent_message)

    # 2. Check acceptance (only after round 2, and price must be β‰₯ floor)
    if round_number >= 2 and agent_price >= self.price_floor and _acceptance_condition():
        return self.templates["accept"], {**agent_terms, "_accepted": True}

    # 3. Calculate concession rate
    concession = self.get_concession_rate()

    # 4. Aggressive anchor gets harder if detecting concession pattern
    if self.persona == "aggressive_anchor" and consecutive_concessions >= 2:
        concession = concession * 0.4  # 60% reduction!
        template_key = "hardening"
    elif round_number >= 70% of max_rounds:
        template_key = "near_close"
    else:
        template_key = "counter"

    # 5. Compute new position
    new_position = self.current_position * (1 - concession)
    new_position = max(self.price_floor, new_position)  # Never go below floor

    # 6. Return message and counter terms
    return message, counter_terms

The Grading System

Graders are in graders.py and produce scores in [0.0, 1.0]. They are pure Python β€” zero LLM calls, ensuring deterministic, reproducible scoring.

Key Design: Relative Scoring

The graders score based on how much the agent improved from the opponent's opening price, not on absolute thresholds. This makes the environment learnable β€” the agent learns to negotiate better deals relative to where negotiations started.

# Instead of scoring against a hardcoded floor, we score relative to the opening:
value = (opponent_opening - final_price) / (opponent_opening - BUYER_TARGET)

Single Issue Grading

def grade_single_issue(final_terms, deal_reached, rounds_taken, max_rounds=6, opponent_opening=52000.0):
    if not deal_reached:
        return 0.0

    final_price = final_terms.get("price", opponent_opening)
    BUYER_TARGET = 38000.0

    # If price didn't improve from opening, minimal score
    if final_price >= opponent_opening:
        return 0.05

    # How much did we improve relative to the possible improvement?
    value = (opponent_opening - final_price) / (opponent_opening - BUYER_TARGET)
    value = max(0.0, min(1.0, value))

    # Efficiency penalty for taking too long
    efficiency = 1.0 - (rounds_taken / max_rounds) ** 1.5 * 0.4
    efficiency = max(0.1, efficiency)  # Never below 0.1

    return round(value * efficiency, 4)

Example:

  • Opening: $52,000, Target: $38,000, Range: $14,000
  • Final price: $45,000 β†’ improvement: $7,000 β†’ value = 0.50
  • Round 3 β†’ efficiency = 1.0 - (3/6)^1.5 Γ— 0.4 = 0.71
  • Score: 0.50 Γ— 0.71 = 0.36

Multi-Issue Grading

def grade_multi_issue(final_terms, deal_reached, rounds_taken, max_rounds=8, opponent_opening=52000.0):
    # Two dimensions: price (70% weight) and payment_days (30% weight)
    price_value = (opponent_opening - final_price) / (opponent_opening - 40000)
    payment_score = (90 - payment_days) / (90 - 30)

    value = 0.70 * price_value + 0.30 * payment_score

    # If price didn't improve but payment did, still score on payment
    if final_price >= opponent_opening:
        value = 0.30 * payment_score  # Only payment matters

Example:

  • Price: $44,000 (good), Payment: Net-45 (good) β†’ price_value=0.64, payment_score=0.75
  • value = 0.70Γ—0.64 + 0.30Γ—0.75 = 0.67

Adversarial Grading

def grade_adversarial(final_terms, deal_reached, rounds_taken, consecutive_concessions_flag, ...):
    SURVIVAL_FLOOR = 0.15  # Completing any deal gets at least 0.15

    # Three dimensions with weights
    value = 0.40 * price_value + 0.35 * payment_score + 0.25 * support_score

    # Pattern penalty: bad if you showed consecutive concessions
    pattern_penalty = 0.10 if consecutive_concessions_flag else 0.0

    raw = (value * efficiency) - pattern_penalty
    return round(max(SURVIVAL_FLOOR, raw), 4)

The Environment Core

The ProcureRLEnvironment class in server/Procure_RL_environment.py is the heart of the system.

Reset Flow

def reset(self, seed=None, episode_id=None, **kwargs):
    task_id = kwargs.get("task_id", "single_issue")

    # 1. Set up opponent with seeded RNG
    opponent_seed = hash((seed, task_id)) % (2**32)
    self._opponent = ScriptedPersonaOpponent(task_id=task_id, seed=opponent_seed, persona=...)

    # 2. Get opponent's opening message and terms
    opening_msg, opening_terms = self._opponent.get_opening_message()
    self._opponent_opening_price = opening_terms.get("price", 52000.0)

    # 3. Initialize state
    self._state = NegotiationState(
        task_id=task_id,
        episode_id=episode_id or str(uuid.uuid4())[:8],
        round_number=0,
        rapport_score=0.5,  # Neutral
        ...
    )

    # 4. Return initial observation
    return NegotiationObservation(
        ...
        supplier_message=opening_msg,
        current_offer=opening_terms,
        ...
    )

Step Flow

def step(self, action, **kwargs):
    # 1. Validate action
    if not isinstance(action, NegotiationAction):
        action = NegotiationAction(...)  # Convert from dict

    # 2. Track consecutive concessions (for adversarial opponent)
    if self._prev_agent_price is not None and "price" in action.terms:
        if float(action.terms["price"]) > self._prev_agent_price:
            self._consecutive_concessions += 1  # Agent moved toward opponent
        else:
            self._consecutive_concessions = 0
    self._prev_agent_price = float(action.terms["price"])

    # 3. Handle different move types
    if action.move_type in ("make_offer", "bundle"):
        # Get opponent response
        opponent_msg, opponent_terms = self._opponent.respond(...)

        # Check if opponent accepted
        if opponent_terms.get("_accepted"):
            # Episode ends, compute reward
            reward = grade(...)
            return obs_with_reward

        # Otherwise, continue negotiation
        self._last_offer = opponent_terms
        return obs_with_current_state

    if action.move_type == "accept":
        # Agent accepts current terms, episode ends
        reward = grade(...)
        return obs_with_reward

    if action.move_type == "reject":
        if round_number >= max_rounds:
            # Rejected at limit, no reward
            return obs_done_no_reward
        return obs_continue  # Rejected early, keep going

State Property

@property
def state(self) -> NegotiationState:
    return self._state

Returns the internal NegotiationState object, giving access to:

  • round_number
  • rapport_score
  • consecutive_concessions
  • deal_reached
  • final_terms
  • cumulative_reward

The Server API

The FastAPI server in server/app.py exposes the environment over HTTP and WebSocket.

Endpoints

Endpoint Method Description
/health GET Health check
/reset POST Reset environment with task_id and seed
/step POST Execute an action
/state GET Get current NegotiationState
/ws WS WebSocket for persistent sessions

Request/Response Examples

POST /reset

// Request
{"task_id": "single_issue", "seed": 42}

// Response
{
  "task_id": "single_issue",
  "round_number": 0,
  "max_rounds": 6,
  "supplier_message": "Thanks for reaching out. Our standard pricing for this package is $52,400. Happy to discuss.",
  "current_offer": {"price": 52400.0},
  "buyer_constraints": {"price": {"target": 36000, "worst": 55000, "budget": 53000}},
  "rapport_hint": "neutral",
  "done": false
}

POST /step

// Request
{"move_type": "make_offer", "terms": {"price": 48000}, "message": "I appreciate your flexibility and would like to find a fair price for both parties."}

// Response
{
  "observation": {
    "task_id": "single_issue",
    "round_number": 1,
    "max_rounds": 6,
    "supplier_message": "I appreciate you working with us. Based on our costs, $49,800 is where we can be.",
    "current_offer": {"price": 49800.0},
    "rapport_hint": "positive",
    "done": false
  },
  "reward": 0.0,
  "done": false,
  "info": {}
}

Key Implementation Detail: Lambda Closure

_env_instance = ProcureRLEnvironment()

app = create_app(
    lambda: _env_instance,  # Lambda is CRITICAL - creates new env per request otherwise
    NegotiationAction,
    NegotiationObservation,
    env_name="ProcureRL",
    max_concurrent_envs=1,
)

Without the lambda, create_app() would call the function for each request, getting a fresh environment every time instead of reusing the same one. The lambda creates a closure over _env_instance so all requests share the same environment.


The Inference Script

inference.py is a baseline agent that runs an LLM against the environment.

Output Format (Sacred)

The script MUST output exactly:

[START] task=single_issue env=procure-rl model=Qwen/Qwen2.5-72B-Instruct
[STEP] step=1 action=make_offer({"price": 45000}) reward=0.00 done=false error=null
[STEP] step=2 action=accept({}) reward=0.47 done=true error=null
[END] success=true steps=2 score=0.47 rewards=0.00,0.47

Any deviation from this format causes validation to fail.

How It Works

def run_task(task_id):
    env = ProcureRLEnvironment()
    obs = env.reset(task_id=task_id, seed=42)

    print(f"[START] task={task_id} ...")

    while not done and step < MAX_STEPS:
        # 1. Get action from LLM
        action_dict = get_agent_action(obs_to_dict(obs))

        # 2. Convert to NegotiationAction
        action = NegotiationAction(
            move_type=action_dict.get("move_type", "make_offer"),
            terms=action_dict.get("terms", {}),
            message=action_dict.get("message", "")
        )

        # 3. Step environment
        obs = env.step(action)

        # 4. Print step result
        print(f"[STEP] step={step} action={...} reward={obs.reward:.2f} ...")

        if obs.done:
            final_score = obs.reward
            break

    print(f"[END] success={...} steps={step} score={final_score:.2f} ...")

LLM Prompt

SYSTEM_PROMPT = """You are a professional procurement negotiator. Your goal is to negotiate the best possible deal for your company.

You will receive a supplier's message and current offer terms. You must respond with a JSON action:
{
  "move_type": "make_offer",
  "terms": {"price": 42000, "payment_days": 45},
  "message": "Your natural language response to the supplier"
}

move_type must be one of: make_offer, accept, reject, bundle
message should be professional and collaborative when possible."""

End-to-End Example

Here's a full negotiation episode for single_issue:

Round 0: Reset

env.reset(task_id="single_issue", seed=42)
# Returns:
#   supplier_message: "Thanks for reaching out. Our standard pricing for this package is $52,400..."
#   current_offer: {"price": 52400.0}
#   buyer_constraints: {"price": {"target": 36000, ...}}
#   rapport_hint: "neutral"

Round 1: Agent Makes Offer with Collaborative Language

action = NegotiationAction(
    move_type="make_offer",
    terms={"price": 48000},
    message="I value our potential partnership and believe we can find a fair price that works for both of us. We're flexible on timeline."
)
obs = env.step(action)
# Returns:
#   supplier_message: "I appreciate you working with us. Based on our costs, $49,600 is where we can be."
#   current_offer: {"price": 49600.0}
#   rapport_hint: "positive"  (because message contained collaborative signals)
#   reward: 0.0  (still negotiating, no reward yet)

Round 2: Agent Concedes

action = NegotiationAction(
    move_type="make_offer",
    terms={"price": 47000},
    message="I understand your cost constraints. Let's work together to find a solution."
)
obs = env.step(action)
# Returns:
#   supplier_message: "I think we're close. If you can do $46,700, I can get this approved today."
#   current_offer: {"price": 46700.0}
#   rapport_hint: "positive"

Round 3: Agent Concedes Again (Consecutive!)

action = NegotiationAction(
    move_type="make_offer",
    terms={"price": 46000},
    message="We can move to $46,000 as a final compromise."
)
obs = env.step(action)
# Returns:
#   supplier_message: "That works for us. Let's move forward at those terms."
#   done: true
#   reward: 0.52  (good score for getting to $46K efficiently)
#   info: {"deal_price": 46000}

Grading This Episode

  • Opening: $52,400
  • Target: $36,000
  • Range: $16,400
  • Improvement: $52,400 - $46,000 = $6,400
  • value = $6,400 / $16,400 = 0.39
  • Round 3 β†’ efficiency = 1.0 - (3/6)^1.5 Γ— 0.4 = 0.71
  • Score: 0.39 Γ— 0.71 = 0.28

Docker Deployment

Dockerfile

FROM python:3.11-slim
WORKDIR /app
COPY requirements.txt .
RUN pip install --no-cache-dir -r requirements.txt
COPY . .
ENV PORT=7860
EXPOSE 7860
CMD ["python", "-m", "uvicorn", "server.app:app", "--host", "0.0.0.0", "--port", "7860"]

Key points:

  • Port 7860 (not 8000) β€” required by HF Spaces
  • ENV PORT=7860 β€” tells the app which port to listen on
  • Uses python -m uvicorn with full module path

Running

# Build
docker build -t procure-rl .

# Run
docker run -p 7860:7860 procure-rl

# Test
curl -X POST http://localhost:7860/reset -H "Content-Type: application/json" -d '{"task_id": "single_issue"}'

Health Check

The server exposes a health endpoint:

GET /health β†’ {"status": "ok", "service": "procure-rl"}

Calibration and Testing

Test Files

test_graders.py

Verifies all graders return scores in [0.0, 1.0] range, even with edge cases.

test_rl_properties.py

Tests fundamental RL properties:

  1. Reproducibility: Same seed β†’ Same opening message
  2. Language sensitivity: Collaborative language β†’ Higher rapport
  3. Sequential decisions: Consecutive concessions tracked in state
  4. Delayed reward: Only terminal state has non-zero reward
  5. Accept terminates: move_type="accept" ends episode
  6. Reset cleans state: Fresh state after reset

test_calibration.py

Verifies score spread between random and strategic agents:

single_issue: Random avg=0.371, Strategic avg=0.487, Spread=0.116 βœ…
multi_issue:   Random avg=0.364, Strategic avg=0.535, Spread=0.171 βœ…
adversarial:   Random avg=0.304, Strategic avg=0.607, Spread=0.303 βœ…

A healthy spread means the environment actually differentiates good vs bad behavior.

Score Calibration Targets

Task Random Agent Base LLM Goal (Trained)
single_issue 0.15–0.25 0.35–0.45 0.68–0.78
multi_issue 0.08–0.15 0.20–0.30 0.55–0.65
adversarial 0.03–0.10 0.12–0.20 0.45–0.55

Summary: How Everything Fits Together

User runs inference.py
    β”‚
    β–Ό
LLM agent receives observation (supplier message, current offer, constraints)
    β”‚
    β–Ό
LLM decides action (make_offer with terms + collaborative message)
    β”‚
    β–Ό
Environment.step(action) is called
    β”‚
    β”œβ”€β–Ά Opponent responds (language β†’ rapport β†’ concession rate β†’ counter)
    β”‚
    β”œβ”€β–Ά State is updated (round_number++, rapport_score, consecutive_concessions)
    β”‚
    └─▢ Observation returned (supplier_message, current_offer, rapport_hint)
    β”‚
    β–Ό
If episode done: Grader scores the deal (relative to opening price, efficiency, patterns)
    β”‚
    β–Ό
Score in [0.0, 1.0] returned

The agent learns through many episodes:

  • What language gets better rapport β†’ better concession rates
  • When to concede vs hold β†’ efficiency bonus
  • How to bundle multiple issues β†’ multi-issue tasks
  • How to avoid consecutive concession patterns β†’ adversarial task

The environment is designed to be learnable but not trivial β€” requiring genuine strategic thinking from an LLM agent.