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Rewarding cooperation in social dilemmas

Raul Jimenez 1Haydee Lugo 1Jose Cuesta 1Anxo Sánchez 1,2

1. Universidad Carlos III de Madrid (UCIIIM), Madrid 28911, Spain
2. Universidad de Zaragoza (BIFI), Zaragoza 50009, Spain

Abstract

We study the effect of sharing a reward among cooperators in the most stringent form of social dilemma. Specifically, for a group of players that collect payoffs by playing a pairwise Prisoner's Dilemma game with their partners, we consider an external entity that distributes a fixed reward equally among all cooperators. Thus, individuals confront a new dilemma: on the one hand, they may be inclined to choose the shared reward despite the possibility of being exploited by defectors; on the other hand, if too many players do that, cooperators will obtain a poor reward and defectors will outperform them. We show that, in a square lattice with imitate-the-best evolutionary dynamics, a single cooperator can invade a population of defectors and form structures that are resilient to re-invasion even if the reward mechanism is turned off. We discuss analytically the case of the invasion by a single cooperator and present agent-based simulations for small initial fractions of cooperators. In addition, we provide a complete characterization of the evolution of cooperation, according to the replicator dynamics.

 

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Related papers

Presentation: Oral at International Conference on Economic Science with Heterogeneous Interacting Agents 2008, by Raul Jimenez
See On-line Journal of International Conference on Economic Science with Heterogeneous Interacting Agents 2008

Submitted: 2008-03-10 15:50
Revised:   2009-06-07 00:48