CATTO: Balancing Preferences and Confidence in Language Models

Large language models (LLMs) often make accurate next token predictions but their confidence in these predictions can be poorly calibrated: high-confidence predictions are frequently wrong, and low-confidence predictions may be correct. This miscalibration is exacerbated by preference-based alignment methods breaking the link between predictive probability and correctness. We introduce a Calibration Aware Token-level Training Objective (CATTO), a calibration-aware objective that aligns predicted confidence with empirical prediction correctness, which can be combined with the original preference optimization objectives. Empirically, CATTO reduces Expected Calibration Error (ECE) by 2.22%-7.61% in-distribution and 1.46%-10.44% out-of-distribution compared to direct preference optimization (DPO), and by 0.22%-1.24% in-distribution and 1.23%-5.07% out-of-distribution compared to the strongest DPO baseline. This improvement in confidence does not come at a cost of losing task accuracy, where CATTO maintains or slightly improves multiple-choice question-answering accuracy on five datasets. We also introduce Confidence@k, a test-time scaling mechanism leveraging calibrated token probabilities for Bayes-optimal selection of output tokens.