Real-time Facial Communication Restores Cooperation After Defection in Social Dilemmas

Facial expressions are central to human interaction, yet their role in strategic decision-making has received limited attention. We investigate how real-time facial communication influences cooperation in repeated social dilemmas. In a laboratory experiment, participants play a repeated Prisoner's Dilemma game under two conditions: in one, they observe their counterpart's facial expressions via gender-neutral avatars, and in the other no facial cues are available. Using state-of-the-art biometric technology to capture and display emotions in real-time, we find that facial communication significantly increases overall cooperation and, notably, promotes cooperation following defection. This restorative effect suggests that facial expressions help participants interpret defections less harshly, fostering forgiveness and the resumption of cooperation. While past actions remain the strongest predictor of behavior, our findings highlight the communicative power of facial expressions in shaping strategic outcomes. These results offer practical insights for designing emotionally responsive virtual agents and digital platforms that sustain cooperation in the absence of physical presence.