Diagnosing and Mitigating Retrieval Bottlenecks in LLM-Based Cold-Start Recommendation

Large language models (LLMs) are increasingly used as rerankers in conversational recommender systems, yet measured gains depend strongly on the retrieval and inference protocol. On the ReDial conversational movie recommendation benchmark, we compare proprietary, open-weight, and fine-tuned LLM rerankers with collaborative-filtering and sequential baselines in a shared retrieve-then-rerank pipeline. We vary candidate-pool size, first-stage retriever, and decoding temperature. With a shared semantic top-250 candidate pool and strict candidate-aware scoring, the best proprietary reranker reaches NDCG@10 of 0.1497, compared with 0.0939 for the strongest non-LLM baseline. The same reranker reaches 0.2925 in zero-shot generation, showing that unconstrained scoring can yield a much larger apparent advantage than matched-pool evaluation. No evaluated open-weight LLM outperforms the tuned shallow autoencoder baseline under this protocol. For the strongest proprietary and open-weight rerankers, switching from semantic to collaborative-filtering candidates raises NDCG@10 by more than 50%, showing that measured reranker performance is highly sensitive to candidate generation. For the best proprietary reranker, raising temperature from 0 to 1.0 increases top-10 Jaccard distance from 0.0900 to 0.1240 while mean NDCG@10 changes negligibly, whereas weaker LLMs show larger degradation. These ReDial results support treating candidate generation, candidate-pool size, scoring policy, and decoding configuration as required reporting fields rather than implementation details.

Recent studies increasingly explore Large Language Models (LLMs) as a new paradigm for recommendation systems due to their scalability and world knowledge. However, existing work has three key limitations: (1) most efforts focus on retrieval and ranking, while the reranking phase, critical for refining final recommendations, is largely overlooked; (2) LLMs are typically used in zero-shot or supervised fine-tuning settings, leaving their reasoning abilities, especially those enhanced through reinforcement learning (RL) and high-quality reasoning data, underexploited; (3) items are commonly represented by non-semantic IDs, creating major scalability challenges in industrial systems with billions of identifiers. To address these gaps, we propose the Generative Reasoning Reranker (GR2), an end-to-end framework with a three-stage training pipeline tailored for reranking. First, a pretrained LLM is mid-trained on semantic IDs encoded from non-semantic IDs via a tokenizer achieving $\ge$99% uniqueness. Next, a stronger larger-scale LLM generates high-quality reasoning traces through carefully designed prompting and rejection sampling, which are used for supervised fine-tuning to impart foundational reasoning skills. Finally, we apply Decoupled Clip and Dynamic sAmpling Policy Optimization (DAPO), enabling scalable RL supervision with verifiable rewards designed specifically for reranking. Experiments on two real-world datasets demonstrate GR2's effectiveness: it surpasses the state-of-the-art OneRec-Think by 2.4% in Recall@5 and 1.3% in NDCG@5. Ablations confirm that advanced reasoning traces yield substantial gains across metrics. We further find that RL reward design is crucial in reranking: LLMs tend to exploit reward hacking by preserving item order, motivating conditional verifiable rewards to mitigate this behavior and optimize reranking performance.

Standard reranking evaluations study how a reranker orders candidates returned by an upstream retriever. This setup couples ranking behavior with retrieval quality, so differences in output cannot be attributed to the ranking policy alone. We introduce a controlled diagnostic for reranking that uses Multi-News clusters as fixed evidence pools. We limit each pool to eight documents and pass identical inputs to all rankers. Within this setup, BM25 and MMR serve as interpretable reference points for lexical matching and diversity optimization. Across 345 clusters, we find that redundancy patterns vary by model: one LLM implicitly diversifies at larger selection budgets, while another increases redundancy. In contrast, LLMs underperform on lexical coverage at small selection budgets. As a result, LLM rankings diverge substantially from both baselines rather than consistently approximating either strategy. By reducing retrieval variance through fixed pools, we interpret these differences more directly as differences in ranking policy. This diagnostic is model agnostic and can be applied to any ranker, including open source systems and proprietary APIs. Our code and processed data for both the Multi-News diagnostic and the complementary TREC-DL evaluation are publicly available at https://github.com/barisarat/llm_reranker_multinews.git.