A Monte Carlo reward estimate computes a return from rewards observed along a complete sampled trajectory. Unlike bootstrapping, it does not require a learned value function. section 6.2.11 section 6.6
In policy-gradient training, the estimate functions as follows:
- REINFORCE uses Monte Carlo returns with a state-based or batch-level baseline to reduce gradient variance. section 6.2.11 section 6.6
- RLOO retains the Monte Carlo approach but replaces the baseline with the average reward of other completions for the same prompt. section 6.2.11
- PPO instead estimates per-token advantages with a learned value function and generalized advantage estimation. section 6.6
REINFORCE update
For each sampled completion, REINFORCE weights log-probability terms by the Monte Carlo return minus a baseline, then optimizes the resulting policy-gradient loss. section 6.2.11
Table 6.1 Comparing policy gradient algorithms. IS: Importance Sampling.
| Method | IS granularity | Clipping style | Advantage |
| REINFORCE | None | None | Monte Carlo baseline |
| RLOO | None | None | Leave-one-out |
| PPO | Token | Objective (bilateral) | Learned value function |
| GRPO | Token | Objective (bilateral) | Group-relative |
| GSPO | Sequence | Objective (bilateral) | Group-relative |
| CISPO | Token | Weights (stop-grad) | Group-relative |
Compare Monte Carlo baselines with learned-value and group-relative advantage methods across policy-gradient algorithms. section 6.2.11
