Entity Matching using Decision Models

Entity matching identifies records that refer to the same real-world entity. Language models can be adapted to this task through bi-encoder, cross-encoder, and generative matcher architectures. However, prior studies often conflate matcher architecture with differences in model backbone, model variant(reflecting different pretraining objectives), and model size, making it difficult to isolate the sources of performance gains. We address this issue through a controlled factorial study spanning three matcher architectures, three model variants and three model sizes from the Qwen3 family, and nine datasets, totaling 1,215 fine-tuning runs. We also evaluate cross-dataset transferability and computational cost. Our results show that model variant is critical for bi-encoders: embedding-oriented variants provide stronger initialization and more favorable representation geometry predictive of downstream matching performance. Cross-encoders retain a consistent advantage over bi-encoders because they jointly encode record pairs rather than representing each record independently, although larger models partially narrow this gap. Generative matchers do not universally outperform cross-encoders. Instead, their advantages concentrate under distribution shift, including subtle unseen differences in record schemas and cross-dataset transfer. We further find that larger models rely more heavily on shortcut learning and therefore do not necessarily perform better. These findings clarify the factors underlying performance differences across matcher architectures and motivate future research and benchmark designs that better disentangle architectural choices from model-level factors while explicitly evaluating distribution shift and cross-dataset transferability. We release our experimental results, code, training scripts, and evaluation data at https://github.com/Jantory/llm-trained-matcher.

Large language models (LLMs) achieve strong entity matching performance without task-specific training data, but applying them to large sets of candidate pairs is slow and costly. Matchers built on pretrained language models (PLMs), such as BERT, offer faster inference but require training data. We systematically study knowledge-distillation workflows in which an LLM teacher labels training pairs for a smaller student matcher. We vary pair selection, labeling budget, teacher model, correspondence post-processing, and student model across eight benchmarks, including unseen entities and non-English data. We compare students trained on machine-labeled data with matchers trained on the original benchmark training sets. In most cases, PLM-based matchers trained on LLM-labeled data perform similarly to those trained on benchmark sets. Pair selection matters most for small labeling budgets, where active learning is often most effective. An open-weight teacher trains competitive students, so distillation requires no closed-weight models. Compact PLM-based students compete with much larger LLM students on most tasks while requiring 34 to 459 times less inference time than direct LLM matching. On the two benchmarks with high shares of unseen products, PLM-based students substantially underperform their teachers, as do students trained on benchmark data. Under GPT-5.2 pricing, LLM labeling costs per training set average $5.86 to $8.11. These findings support knowledge distillation as a practical approach to reduce the effort of labeling task-specific training data while enabling efficient inference.

Entity matching (EM) requires fine-grained contextual understanding and domain knowledge. Recent work shows that large language models (LLMs) can serve as strong matchers across domains, but most methods either make independent pairwise decisions or rely on manually designed composite pipelines, thus lacking flexibility in realistic multi-candidate settings. At the same time, they typically ignore inference cost at scale. We formulate LLM-based EM with candidates as a cost-aware sequential decision problem and propose CaRL-EM, a reinforcement learning controller that manages LLM operations. Given the state of an anchor record, its candidate set, and the cost, CaRL-EM adaptively chooses among different operators (Match/Compare/Select/Decide) and model capacities to maximize a quality-cost objective. The policy interacts with abstract operators, allowing the same controller to be reused with different underlying LLM backends at inference time without retraining. Experiments on 7 benchmarks show that CaRL-EM (i) learns to dynamically plan the usage of inexpensive and expensive operators based on task complexity, (ii) achieves robust zero-shot transfer across diverse datasets and domains, and (iii) consistently achieves a better quality-cost trade-off than strong LLM-based baselines and manually designed pipelines, yielding a lower inference cost at comparable or higher quality.