The emergence of reciprocally beneficial cooperation
This paper offers a new and robust model of the emergence and persistence of cooperation. In the model, interactions are anonymous, the population is well-mixed, and the evolutionary process selects strategies according to material payoffs. The cooperation problem is modelled as a game similar to Prisoner’s Dilemma, but there is an outside option of nonparticipation and the payoff to mutual cooperation is stochastic; with positive probability, this payoff exceeds that from cheating against a cooperator. Under mild conditions, mutually beneficial cooperation occurs in equilibrium. This is possible because the non-participation option holds down the equilibrium frequency of cheating.
|Date of creation:||Jul 2010|
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IEW - Working Papers
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- Ochea, Marius-Ionut, 2013. "Evolution of repeated prisoner's dilemma play under logit dynamics," Journal of Economic Dynamics and Control, Elsevier, vol. 37(12), pages 2483-2499.
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