reciprocity

Why Is Reciprocity So Rare in Social Animals? A Protestant Appeal

One Sentence Summary:
Game theoretic explanations of the evolution of cooperation in humans and other animals relies on assumptions -- rational players should never cooperate, cooperative behavior is explained by direct or diffuse reciprocity, animals can do the mental bookkeeping necessary to reciprocate with multiple partners over time -- that are not always or often borne out by data, necessitating new conceptual tools.
Disciplines:
Biology
Cultural Evolution
Economics
Findings:
  • Partner markets, emotions, learning, reputation all strongly influence cooperation in social animals including humans, but are ignored by conventional game theory models of reciprocal altruism, indicating a need for new conceptual tools in evolutionary game theory.
  • Evolution does not design new mental tools for each problem, but modifies existing mechanisms.
Keywords:
tit-for-tat
reputation
reciprocity
prisoners dilemma
evolution
cultural evolution
cooperation
altruism
Author(s) / Editor(s):
Published in:
Genetic and Cultural Evolution of Cooperation, Peter Hammerstein, Ed., MIT Press in Cooperation with Dahlem University Press
Date:
2003
One Paragraph Summary:

Game theoretic explanations of cooperation involving tit-for-tat strategies and reciprocal altruism are not supported by a large body of evidence. Only a small number of animal examples have been found. Simple models of repeated games do not match the circumstances of evolutionary change. Partner switching and mobility counter the assumptions necessary for reciprocal altruism as a stable evolutionary mechanism. Reciprocity requires significant mental machinery – how do organisms determine whether the actions of others are intentionally or unintentionally cooperative or uncooperative? Alternative conceptual schemas such as partner markets – making it unprofitable for partners to switch – offer alternative conceptual schemas. Emotions may play a role in mediating complex interactions in which intentionality and reputation play a part.

When Push comes To Pull: The New Economy and Culture of Networking Technology

One Sentence Summary:
Information and communication technology innovation have begun to transform commercial business and social institutions from a "push" technology approach (hierarchical "center out"), to a "pull" technology approach (networked -based and decentralized). This poses new challenges to social, political, and educational systems that are largely designed to support "push" economies.
Disciplines:
Business
Law
History
Cultural Evolution
Technology
Economics
Political Science
Sociology
Findings:
  • We are living in an epochal period of transition bridging two very different types of economies and cultures. We are transitioning from a "push" economy: that tries to anticipate consumer demand, and then creates a standardized product, and "pushes the product into the market and culture, using standardized distribution channels and marketing. We are transitioning to a "pull" economy: open and flexible production platforms that use network technologies to coordinate many different entities from disparate regions.. "Pull" economies produce customized products and services that serve localized needs (demand-driven), usually in a rapid manner.
  • "Pull" networks tend to build the capabilities of their networked partners, by providing performance feedback and sharing best practices among the network participants. "Pull" platforms therefore tend to better employ the enthusiasm of all of the participants.
  • The "pull" phenomenon is not confined to business/online commerce. The spread of common use of internet technologies is finding "pull" techniques being applied in entertainment, social life, politics, education, and government.
  • "Pull" models are going to change the way that governments create policy as more companies gravitate toward them.
Keywords:
capitalism
communication
complexity
cooperation
cultural evolution
group forming networks
hierarchy
intellectual property
interdependence
networks
norms
open source
property rights
reciprocity
reputation
social capital
trust
Author(s) / Editor(s):
Published in:
The Aspen Institute
Date:
2006
One Paragraph Summary:

Over the past 25+ years, change that has usually originated with technological innovation has led to new products, services, and human behavior patterns. These changes are reflected in business and industry, and the way that people entertain, govern, educate, and socialize among themselves. The change is from a centralized, command and control, bureaucratic, broadcast way of organizing, that tries to anticipate and create demand, to a decentralized and highly networked system that shares information about overall network performance and best practices among it's network, and meets local and specialized needs.

One Page Summary:

This paper is a summary of an Aspen Institute sponsored in-depth roundtable session, written from the perspective of one informed conference observer (Bollier). The participants are leading thinkers in the many complex areas this paper covers (economics, systems theory, human behavior, human futures, information technology evolution, etc) and are listed on page 57. A selection of their key insights shared in the paper are listed below:

A "push" economy is geared towards mass production, anticipating consumer demand, and routing resources to the right place at the right time, to create standardized and mass produced products. By contrast, a "pull" economy is based on open, flexible production platforms that are used to orchestrate a broad range of resources. Instead of producing standardized products, "pull" model companies are demand-driven, and assemble products in customized ways that serve specialized or local needs, usually using "rapid" or "on the fly" processes.

Several global corporations are moving towards "pull" methods, and away from "push" models; ie., Toyota, Dell, Cisco, Li & Fung. These companies employ different variations of Value Network models, that share information about overall network performance and best practices for serving specialized needs, among hundreds or even thousands of partner companies that make up the network. This creates an intra-network knowledge commons. Some companies also work closely with Open Source Software projects, thereby expanding their "pull" network, and expanding their knowledge commons into a broader Open Commons via Open Source Software project contributions. Thus, "pull" business models also tend to be Network Value-Increasing, and Commons-based business models as well.

"Pull" models can also be platforms for creating "increasing returns dynamics." This is due to "pull" models being based around loose and flexible networks that are already configured to scale as growth occurs. So, growth does not incur the huge overhead costs in administration that "push" models must contend with. Pull platform key characteristics include modular and loosely-coupled networks, open channels that better harness the passion and commitment of innovation communities. "Pull" platforms also will tend to influence public policy with regards to education and innovation, as more companies tend to gravitate towards the "pull" models.

The areas where "push" models tend to succeed in business are in areas where people do not know what they want, and prefer to shop from pre-made selections (Ikea, Home Depot). However, there are even "pull" models to found here, in the form of user-driven innovation, such as mountain biking, extreme skiing, hot rodding, etc. In these pro-amateur niches, customers don't necessarily know what they want, but do want to be a participant in the "pull" network that creates the product.

How do you tax a product that is made in 23 different countries? "Pull" models are going to change the way that governments create policy as more companies gravitate toward them. This will influence laws about intellectual property, education, taxation and more.

"Pull" economies are not just centered around finding creative ways to "outsource/offshore jobs" away from one place and to the places where "labor" is "cheaper". Successful "pull" models have encouraged and aided "insourcing", where more jobs are created, for instance in the United States by "foreign sources (a total of 7 million cited by this paper), than are out sourced (a total of 600,000+ cited by this paper). This is because pull models seek out, not just the "cheapest" labor, but the best ways to add value to the production networks. So, they can scale to many participants around the world, regardless of local labor costs, to find the best participants needed for specific specialized productions.

The social dynamics of "pull" models are highly centered around creating relationships of trust, sharing knowledge, and close cooperation among network participants. In "pull" models, non-market value creation (tacit knowledge, intangible value) is generally steered towards a commons-based model. A commons is used as a "collective governance regime for managing shared resources sustainably and equitably." Many of these commons are made possible by networked information technologies (the internet).

Bollier suggests that "if online commons are going to be useful to business, companies will need to do more work to develop protocols for identity and reputation management". This is because the use of the commons is based around trust. It also due to the need for ways to measure qualitative value in intangible assets beyond money, like knowledge, individual performance and value multiplication, and network wide performance/value multiplication.

Roundtable participants also noted that "pull" models will pose challenges to current education regimes that are centered around training people to participate in "push" economies. One of the participants mentions that " Computers, software tools, and Internet resources make possible some radically new styles of learning. By using pull-based systems, students can function much like businesses in the pull environment: They can access resources they don't control and put themselves into flows of activity, rather than just building inventories of static, objectified "knowledge."

Towards Realistic Models for Evolution of Cooperation

One Sentence Summary:
The five major approaches to answering how cooperation emerges and becomes stable in nature (Group Selection, Kinship Theory, Direct Reciprocity, Indirect Reciprocity, and Social Learning) might be improved by not presuming asexual and non-overlapping generations, simultaneous-play for every interaction, dyadic interactions, mostly predetermined and mistake-free behavior, discrete actions (cooperate or defect), and the trivial role of social structure and social learning of individuals.
Disciplines:
Biology
Cultural Evolution
Sociology
Findings:
  • Observer-based reciprocity relaxes the requirement that each individual's likelihood of cooperating be known globally by introducing randomly selected observers. Even though interactions are only visible to these observers cooperation can still evolve showing "that cooperation may evolve through indirect reciprocity with or without global knowledge about agents' image scores."
  • Darwin's notion of the "survival of the fittest" does not specify what "fittest" refers to, and for good reason: the outcome of a behavior in each contingent situation determines its fitness. Different interpretations of "fittest" lead to different models for how natural selection works and therefore offer different explanations for the evolution of cooperation.
Keywords:
trust
reputation
reciprocity
evolution
cultural evolution
cooperation
competition
bioeconomy
altruism
agent-based model
Author(s) / Editor(s):
Published in:
MIT LCS Memorandum
Date:
2002
One Paragraph Summary:

Sociological and biological observations of humans and animals show that cooperation is an inherent part of human life and the life of many animals. This poses two questions: how do cooperative strategies become stable within evolution? And, how does cooperation emerge initially? Even though researchers have tried to answer these questions for at least a century, existing models do not fully explain why cooperation evolves. There are five major approaches: Group Selection, Kinship Theory, Direct Reciprocity, Indirect Reciprocity, and Social Learning. Each of these models explain only a few aspects of cooperation and might be improved by dropping some unrealistic assumptions: asexual and non-overlapping generations, simultaneous-play for every interaction, dyadic interactions, mostly predetermined and mistake-free behavior, discrete actions (cooperate or defect), and the trivial role of social structure and social learning of individuals.

The Evolutionary Stability of Cooperation

One Sentence Summary:
Given a variety of strategies ranging from cooperative to combative, cooperative retaliatory strategies tend to be the most stable but remain vulnerable to invasion.
Disciplines:
Political Science
Sociology
Findings:
  • All strategies in iterative prisoner's dilemma games are vulnerable to invasion and therefore inherently unstable.
  • Tit-for-Tat (cooperative) strategies are the most stable. These strategies can withstand higher levels of invasion by competing strategies.
  • All strategies have a threshold of stability, if a certain percentage of the population adopts these strategies they can be self-maintaining.
Keywords:
cultural evolution
equilibrium
evolution
game theory
prisoners dilemma
reciprocity
tit-for-tat
Author(s) / Editor(s):
Published in:
Journal
Date:
June 1997
One Paragraph Summary:

Previous theorists had been divided regarding the stability of Tit-for-tat strategies in prisoners Dilemma gaming. Bendor and Swistak show, through seven theorems, that all strategies can be overwhelmed. There are, however, thresholds of stability where certain nice and retaliatory strategies can withstand large invasions of alternative strategies. At sufficient strength a strategy can either overwhelm the invader, support subcultures of strategy, or co-opt in the invader to a given level of invasion. Even nice and retaliatory strategies have a breakdown point, however. The authors conclude that the anything less than 100% cooperation would be inherently unstable.

One Page Summary:

Theorists have posited that pure tit-for-tat strategies in iterative prisoners dilemma games were invulnerable. Is this correct? The authors seek to answer this question by examining the ability of various prisoners dilemma gaming strategies to withstand invasion by other competing strategies.

Bender and Swistak examine a gaming strategy universe that includes the strategies:

  • Tit for tat - a player will initially cooperate and then in future rounds mimic the behavior of their opponent.
  • Tit for 2 Tats - a player will cooperate for the first two rounds and then defect in rounds where their opponent defected in the previous two.
  • Suspicious Tit for Tat - a player will initially defect and then will mimic their opponent in future rounds.
  • Always Defect
  • Always Cooperate
  • Grim Trigger - Begin by cooperating, if opponent defects then always defect afterward.

These strategies were examined in pure conditions where only one existed, and then competing strategies were introduced. If a given strategy could withstand incursions by competing strategies it was deemed "stable".

Stability proved to be a continuum. All strategies proved to have points of equilibrium. At this point, a strategy can withstand its maximum level of incursion. That point is that strategy's maximum stability.

The Evolution of Strategies in the Iterated Prisoner's Dilemma

One Sentence Summary:
The genetic algorithm uses computer simulations to evolve different strategies for playing Prisoner's Dilemma games, and by observing the interactions of populations of agents over many runs, it is possible to make useful observations that could generalize to human behavior – such as the tendency of reciprocation to establish itself and spread if cooperating agents are able to encounter one another.
Disciplines:
Biology
Computer Science
Economics
Political Science
Information
Findings:
  • Genetic algorithms, developed for complexity and artificial life research, can be used to evolve strategies for playing Prisoner's Dilemma games that are well-adapted to different environments, and thus can be a probe of possible dynamics of human cooperation.
  • From a random start, populations of Prisoner's Dilemma strategies evolve away from cooperation to less cooperative rules, but after a number of runs, those players that reciprocate when encountering cooperation lock into mutually beneficial reciprocal cooperation: reciprocity, once established, can spread through a population that is originally dominated by non-cooperative strategies.
  • Genetic algorithms are highly effective method of searching for successful strategies in very large possibility spaces.
Keywords:
agent-based model
complexity
evolution
game theory
prisoners dilemma
reciprocity
tit-for-tat
Author(s) / Editor(s):
Date:
1987
One Paragraph Summary:

John Holland at University of Michigan developed a means of testing computer problem-solving methods by applying a method based on Darwinian evolution: agents (program) have a phenotype (the strategy the program uses for problem solving) and a genotype (the way strategies are represented in their programming code). Means of reproduction and mutation are specified. Agents interact with each other in a rigorously specified simulation, and the effectiveness of each agent is evaluated in a particular environment in relation to its interactions with other agents; successful strategies are reproduced at a higher rate than less successful strategies; pairs of successful offspring strategies are mated by combining genetic material; mutation is introduced. Simulations can be halted after specified numbers of runs and analyzed, then restarted. In about a quarter of simulation runs with sexual reproduction, better strategies than Tit-for-Tat evolved, and after a random start, populations tend to first evolve away from cooperation as less cooperative rules succeed more often, but can evolve back toward stable cooperation states if cooperative strategies encounter one another and reciprocate.

The Evolution of Cooperation

One Sentence Summary:
"The objective of this enterprise is to develop a theory of cooperation that can be used to discover what is necessary for cooperation to emerge."
Disciplines:
Political Science
Sociology
Findings:
  • The emergence of cooperation can be seen as a consequence of agents pursuing their own interests. It is not necessary to assume that those agents are more honest, more generous, or more cooperative per se.
  • What makes it possible for cooperation to emerge is the fact that the agents might interact again. The choice made now of whether or not to cooperate will affect choices made in later interactions. This called the 'shadow of the future.' The shadow of the future can exist even when the participants are unaware of it, as is the case in biological cooperation (symbiosis).
  • No best rule exists independently of the strategy being used by others. Despite this fact, robust strategies, useful in many contexts, are possible.
  • The evolution of cooperation requires high levels of reciprocal interactions between agents. The absolute number of agents can be small as long as their interactions are numerous.
  • Communities of cooperation, once established, can protect themselves from 'invasion' by less cooperative strategies. "The gear wheels of social evolution have a ratchet."
  • The winning tit-for-tat strategy:
    1. Don't be envious. Don't compare your success to others, only to your own strategic possibilities, i.e. are you employing the best strategy you have?
    2. Don't be the first to defect. Cooperate as long as others are cooperating.
    3. Reciprocate both cooperation and defection. Enforcing the rules is as important as playing by them.
    4. Be transparent. In order for others to coordinate their choices with yours, they have to understand your behavior. Keep it simple and out in the open.
  • Ways to promote cooperation:
    1. Enlarge the shadow of the future. Increase the permanence of cooperative choices or the frequency of interactions.
    2. Change the payoffs. Make the long-term incentives to cooperate greater than the short-term incentives to defect.
    3. Socialize reciprocal cooperation as a norm. Teach people to cooperate first.
    4. Improve collective memory. Collective memory, or culture, is embedded in institutions. Provide access to collective memory.
  • The foundation of cooperation is the durability of the relationship, which allows agents to learn about each other in order to cooperate.
Keywords:
assurance game
agent-based model
communication
cooperation
norms
prisoners dilemma
reciprocity
reputation
security
tit-for-tat
trust
Author(s) / Editor(s):
Published in:
Basic Books
Date:
August 1, 1985
One Paragraph Summary:

Why do people (or other actors) cooperate? "The objective of this enterprise is to develop a theory of cooperation that can be used to discover what is necessary for cooperation to emerge." It uses the Prisoner's Dilemma as a framework for testing theories about balancing self-interest and competition.

One Page Summary:

Chapter 1, The Problem of Cooperation. Why do people (or other actors) cooperate? "The objective of this enterprise is to develop a theory of cooperation that can be used to discover what is necessary for cooperation to emerge." It uses the Prisoner's Dilemma as a framework for testing theories about balancing self-interest and competition.

"In the Prisoners' Dilemma, the strategy that works best depends directly on what strategy the other player is using and, in particular, on whether this strategy leaves room for the development of mutual cooperation."

Chapter 2, TIT FOR TAT. "The iterated Prisoners' Dilemma has become the E. Coli of social psychology," yet people have not paid much attention to how to play the game well. Axelrod organized a computer tournament to which people familiar with PD submitted programs encoding different strategies. The winner was one of the simplest, TIT FOR TAT.

Axelrod then constructed an environment in which different programs competed, and the losing programs were eliminated: this was an ecology that rewarded high scoring programs, and punished others. "This process simulates survival of the fittest. A rule that is successful on average with the current distribution of rules in the population will become an even larger proportion of the environment of the other rules in the next generation. At first, a rule that is successful with all sorts of rules will proliferate, but later as the unsuccessful rules disappear, success requires good performance with other successful rules." In other words, the competition gets tougher.

"The analysis of the tournament results indicate that there is a lot to be learned about coping in an environment of mutual power. Even expert strategists from political science, sociology, economics, psychology, and mathematics made the systematic errors of being too competitive for their own good, not being forgiving enough, and being too pessimistic about the responsiveness of the other side."

The tournaments reveal that "there is a single property which distinguishes the relatively high-scoring entries from the relatively low-scoring entries. This is the property of being nice, which is to say never being the first to defect."

TIT FOR TAT's rules for success:

  • Be nice. Don't be the first to go on the attack. This demonstrates good will, and avoids provoking others.
  • Retaliate. If others attack, retaliate. Not doing so encourages bad behavior and gives niceness a bad reputation.
  • Be forgiving. If others defect but then go back to cooperating, accept the opportunity to move back to a cooperative mode.
  • Be clear. Others can predict what you'll do, be certain that their moves will have definite outcomes. "There is an important contrast between a zero-sum game like chess and a non-zero-sum game like the iterated PD. In chess, it is useful to keep the other player guessing about your intentions. The more the other player is in doubt, the less efficient will be his or her strategy. But in a non-zero-sum setting it does not always pay to be so clever. In the iterate PD, you benefit from the other player's cooperation."

Chapter 4, Trench Warfare. During World War I, "live and let live" arrangements emerged spontaneously between opposing units on the Western Front. Cooperation could take hold because "the same small units faced each other in immobile sectors for extended periods of time." Consequently, they had a more sustained relationship than in mobile warfare, and could develop commonly-understood rules, reciprocity and restraint in attacks, displays of strength (e.g., snipers shooting at hard targets)as well as ethics (recognition that there was an arrangement and violating it was immoral) and rituals (e.g., regular artillery firing).

"Cooperation first emerged spontaneously in a variety of contexts, such as restraint in attacking the distribution of enemy rations, a pause during the first Christmas in the trenches, and a slow resumption of fighting after bad weather made sustained combat almost impossible. These restraints quickly evolved into clear patterns of mutually understood behavior, such as two-for-one or three-for-one retaliation for actions that were taken to be unacceptable."

Chapter 6, How to Choose Effectively. Four suggestions about how to do well in PD:

  • Don't be envious. In a PD, "envy is self-destructive. Asking how well you are doing compared to how well the other player is doing is not a good standard unless your goal is to destroy the other player." However, in an iterated prisoner's dilemma, you can't do better than the other player, unless they're always suckers. "In a non-zero-sum world you do not have to do better than the other player to do well for yourself. The other's success is virtually a prerequisite of your doing well for yourself."
  • Don't be the first to defect (be nice). "It pays to cooperate as long as the other player is cooperating." In a short game, defection can make sense; but in a relationship, taking advantage of the other person is self-defeating.
  • Reciprocate both cooperation and defection. TIT FOR TAT "does not destroy the basis of its own success. On the contrary, it thrives on interactions with other successful rules." However, the right level of forgiveness depends on the context, and the other players' strategies.
  • Don't be too clever. "In a zero-sum game, such as chess it pays for us to be as sophisticated and as complex in our analysis as we can. Non-zero-sum games are not like this. The other player can respond to your own choices. And unlike the chess opponent, the other player in a PD should not be regarded as someone who is out to defeat you." "There is an important contrast between a zero-sum game like chess and a non-zero-sum game like the iterated PD. In chess, it is useful to keep the other player guessing about your intentions. The more the other player is in doubt, the less efficient will be his or her strategy. But in a non-zero-sum setting it does not always pay to be so clever. In the iterate PD, you benefit from the other player's cooperation."

Chapter 7, How to Promote Cooperation. Promoting cooperation can be thought of as an exercise in tinkering with the variables in a PD. "As long as the interaction is not iterated, cooperation is very difficult. That is why an important way to promote cooperation is to arrange that the same two individuals will meet each other again, be able to recognize each other from the past, and to recall how the other has behaved until now."

  • Enlarge the shadow of the future. For cooperation to emerge, players must be in a continuing relationship, with the expectation that it will continue in the future. "Mutual cooperation can be stable if the future is sufficiently important relative to the past." "There are two basic ways of doing this: by making the interactions more durable, and by making them more frequent. [P]rolonged interaction allows patterns of cooperation which are based on reciprocity to be worth trying and allows them to become established," Making interactions more frequent makes "the next interaction occur sooner, and hence the next move looms larger than it otherwise would." You might do this by enforcing isolation, or constructing hierarchies or organizations, which are "especially effective at concentrating the interactions between specific individuals."
  • Change the payoffs. Make defection less attractive, by enforcing laws, or growing the value of long-term incentives.
  • Teach people to care about each other.
  • Teach reciprocity. Reciprocity "actually helps not only oneself, but others as well. It helps others by making it hard for exploitative strategies to survive."
  • Improve recognition abilities. "The ability to recognize the other player from past interactions, and to remember the relevant features of those interactions, is necessary to sustain cooperation. Without these abilities, a player could not use any form of reciprocity and hence could not encourage the other to cooperate."

Chapter 8, The Social Structure of Cooperation.
The social structure of cooperation involves labels, reputation, regulation, and territoriality.

  • Labels are fixed characteristics of an agent that are observable by other agents. Labels affect reciprocity and retaliation via assumptions of group similarity and stereotypes.
  • Reputation is others' belief about the strategies an agent will employ. Reputation may be based on past behavior or on rumours, i.e. reputation can be accurate or merely believed. Reputation affects whether or not other agents will cooperate or defect with you.
  • Regulation involves setting the stringency of a standard of behavior "high enough to get most of the social benefits of regulation, and not so high as to prevent the evolution of a stable pattern of voluntary compliance from almost all of the companies" (or regulated agents).
  • Territoriality refers to both physical and conceptual spaces that can be 'invaded' by agents of differing strategies. Territoriality establishes boundaries within which behaviors will be reinforced or retaliated against depending on prevailing norms. Also, the boundary provides an 'inside' for agents that comply with the norms, and an 'outside' to which they can be expelled if they do not comply.

Chapter 9, The Robustness of Reciprocity.

  • Cooperation can get started by even a small cluster of individuals who are willing to reciprocate cooperation, even in a world where no one else will cooperate.
  • Once cooperation is establish, it protects itself from invasion by non-cooperative strategies.
  • The foundation of cooperation is the durability of the relationship, which allows agents to learn about each other in order to cooperate.

Is Strong Reciprocity a Maladaptation? On the Evolutionary Foundations of Human Altruism.

One Sentence Summary:
Evidence is cited that strong reciprocity (repaying cooperation and punishing defection, cheating, violation of fairness norms), which plays a role in the provision of public goods and contradicts theories of selfish actors, is neither a maladaptation, nor explained in an evolutionary context by kin selection, reciprocal altruism, indirect reciprocity, or costly signaling.
Disciplines:
Biology
Cultural Evolution
Computer Science
Political Science
Sociology
Findings:
  • Humans repay gifts and punish cheaters of cooperation and fairness norms, even in anonymous, one-shot encounters with genetically unrelated strangers (strong reciprocity) – contrary to theories that all humans are strictly rational and strictly self-interested actors -- and evidence suggests that the presence of a high number of strong reciprocators in human groups was an evolutionary advantage.
  • Strong reciprocity plays a decisive role in the production of public goods – strong reciprocity in the provision of public goods is enabled by the metanorm of altruistic punishment, which makes possible the maintenance of norms that are good for groups at a cost to individuals.
Keywords:
altruism
cooperation
evolution
prisoners dilemma
public goods
punishment
reciprocity
reputation
tit-for-tat
Author(s) / Editor(s):
Published in:
MIT Press in Cooperation with Dahlem University Press
Date:
2003
One Paragraph Summary:

Economic games that probe of human behavior (including games that allow punishment of cheaters and non-reciprocators), together with research by biologists, zoologists, and primatologists have delivered strong evidence that traditional assumptions of universally strictly egoistic (rationally self-interested) behavior are at least partially wrong: People repay gifts and punish cheaters, even at a cost to themselves, even among strangers in one-shot games where there is not possibility of reaping future repayment. This practice of "strong reciprocity" has been explained evolutionarily as a maladaptation. The authors of this survey marshal evidence that theories of kin selection (altruism on behalf of genetic relatives that provides reproductive advantage to those who share the altruist's genes), reciprocal altruism (gifts that are made with expectation of eventual repayment by the giftee), indirect reciprocity (gaining a reputation that could pay off in future encounters with other members of the group) costly signaling (acts that cost the actor, but which signal desirability of the signaler as a potential ally or mate) do not sufficiently explain strong reciprocity – and evidence that contradicts these theories as explanatory mechanisms. A cultural evolution hypothesis is proposed: groups that are not closely genetically related can gain survival advantage in competition with other groups if a disproportionate number of strong reciprocators are present – and the presence of strong reciprocators is only possible when cheaters are punished. At the same time, other selection pressures drive the presence of purely selfish humans. Both types coexist because they have coevolved in human cultural practice. The authors offer a beginning, not an ultimate answer, to questions about strong reciprocity, suggesting further research.

How To Cope With Noise in the Iterated Prisoner's Dilemma

One Sentence Summary:
The Tit-for-Tat strategy is vulnerable to noise – errors in implementing choices – that can lead to echoing defections, but can be made less sensitive by adding generosity (occasionally refraining from punishing defection by opponent) and contrition (refraining from punishing a reaction to accidental defection.)"
Disciplines:
Biology
Computer Science
Economics
Political Science
Findings:
  • Random errors in implementing strategies is common in the real world ("noise"), and Tit-for-Tat is sensitive to noise because echoes of a mistake (a defection that was meant to be a cooperation) can continue indefinitely.
  • An article in Nature, 1993 (Nowak& Sigmund, "Strategy of Win-Stay, Lose Shift That Outperforms Tit-for-Tat," 364: 56-58) highlighted a strategy that also applies to real-world situations – defectors can shift partners until they find those that are exploitable, and cooperators can shift partners until they find co-cooperators.
Keywords:
agent-based model
complexity
cooperation
game theory
reciprocity
tit-for-tat
prisoners dilemma
Author(s) / Editor(s):
Published in:
Journal of Conflict Resolution 39, No. 1: 183-189
Date:
March 1995
One Paragraph Summary:

Axelrod became concerned with the problem of noise – mistaken defections in Prisoner's Dilemma games that can lead to echoing repetitions – during the Cuban Missile crisis. Adding generosity and contrition to Tit-for-Tat and reimplementing the 63 rules of the original iterated Prisoner's Dilemma tournament proved to be an effective way of coping with noise; Win-Stay, Lose-Shift did not do as well in such an environment. Axelrod was able to put Soviet and US nuclear strategists together to play Prisoner's Dilemma in 1988 for an audience of social scientists -- with noise deliberately introduced. This tournament was the basis for Axelrod's statement that "Noise calls for forgiveness, but too much forgiveness invites exploitation." The authors also noted: "Generosity can correct an error by either player, but contrition can only correct one's own error. Thus, when the population of strategies one is likely to meet has not adapted to the presence of noise, a strategy like Generous Tit-for-Tat is likely to be effective. On the other hand, if the strategies of the other players one is likely to meet have already adapted to noise, then a strategy like Contrite Tit-for-Tat is likely to be even more effective because it can correct its own errors and restore mutual cooperation almost immediately."

Foundations of Human Sociality (Introduction and Overview)

One Sentence Summary:
Experiments like the Ultimatum Game and the Public Goods Game (one shot games for real money divided among strangers) that have been conducted in different countries all over the world have shown that group behavior frequently does not fit the traditional model of self-interested actors, that it is too richly varied between cultures to support a universal sense of fairness, and that a higher degree of market integration and higher payoffs to cooperation can be linked to greater levels of prosocial behavior.
Disciplines:
Economics
Sociology
Psychology
Findings:
  • People are willing to reward fairness and reciprocity and punish those who do not act pro-socially, even at cost to themselves.
  • Group-level differences in behavior proved to be greater than individual-level differences, indicating cooperative behavior might be more embedded in cultural conditions than was previously thought. While one culture might take advantage of a person who is too altruistic, another might exclude a person for being too self-interested.
Keywords:
trust
reputation
reciprocity
public goods
prisoners dilemma
game theory
equilibrium
cultural evolution
cooperation
communication
assurance game
altruism
Published in:
Oxford University Press
Date:
2004
One Paragraph Summary:

The self-regarding and outcome oriented picture of human behavior presented in traditional economics does not explain why humans care so much about each other and about how social interaction is carried out, not just the end goals. The Ultimatum Game, designed by Werner Guth, is just one illustration of how real people will not always follow the dictates of self-interested rationality. Two subjects are given a sum of money, one is given the power to divide the sum, and the other can either accept or reject (in which case neither get any money). Research from conducting hundreds of trials of the game with thousands of students in Europe, Japan and the USA has shown that the responders frequently reject low offers and proposers frequently propose near equal divisions, even though it is to their monetary disadvantage. While early experiments on undergraduates seemed to suggest that there was a universal sense of fairness, extended research in different cultures (hunter-gatherers, slash-and-burn agriculturists, nomadic pastoralists) has exposed much cultural variation in responses, indicating that local cultural conditions play an important role in how people approach cooperation.

One Page Summary:

The self-regarding and outcome oriented picture of human behavior presented in traditional economics does not explain why humans care so much about each other and about how social interaction is carried out, not just the end goals. The Ultimatum Game, designed by Werner Guth, is just one illustration of how real people will not always follow the dictates of self-interested rationality. Two subjects are given a sum of money, one is given the power to divide the sum, and the other can either accept or reject (in which case neither get any money). Research from conducting hundreds of trials of the game with thousands of students in Europe, Japan and the USA has shown that the responders frequently reject low offers and proposers frequently propose near equal divisions, even though it is to their monetary disadvantage. While early experiments on undergraduates seemed to suggest that there was a universal sense of fairness, extended research in different cultures (hunter-gatherers, slash-and-burn agriculturists, nomadic pastoralists) has exposed much cultural variation in responses, indicating that local cultural conditions play an important role in how people approach cooperation.

While mean proposals for university students from all over the world was usually between 42 and 48 percent, mean proposals from this cross-cultural study varied from 25 to 57 percent. Rejection rates, the action of the responders, also varied considerable between groups. Individual-level economic and demographic variables did not explain behavior as well as group-level behavior, and game play often could be connected to the people's common patterns of interaction. For example, the Orma recognized that one of the experiment's games was similar to the harambee, a local institution of giving to public goods like roads and schools. They began calling it 'the harambee game' and displayed highly prosocial behavior. In other groups, like the Au and Gnau, frequent rejection of generous offers can be explained by a cultural association with gift-giving: accumulating gifts, even if unsolicited, can imply a lowered status and force the receiver into future obligations or political alliance. The cross-cultural study showed that, in the case of groups at the extremes of behavior, "contrasting behaviors seem to reflect their differing patterns of everyday life, not any underlying logic of hunter-gatherer life ways."

The effect of market integration on cooperation to obtain a monetary reward can be explained easily: individuals from market-oriented societies when put in the context of one of the games are able to seek analogues in their daily activities of using and trading money with strangers. "Those who do not customarily deal with strangers in mutually advantageous ways may be more likely to treat anonymous interactions as hostile or threatening, or as occasions for the opportunistic pursuit of self-interest."

Evolutionary Psychology and the Social Sciences

One Sentence Summary:
Evolutionary psychology helps us link up the Darwinian story of cooperation in nature, of kin selection, cooperation for mutual advantage, reciprocal altruism, and group selection, with the familiar story of the development of human societies, of property rights, nations, banks, and charity, without implying that such a connection could morally justify or perfectly determine human behavior.
Disciplines:
Biology
Anthropology
Cultural Evolution
Sociology
Psychology
Findings:
  • "Studying animal behavior and cooperation, therefore, is useful in the same way that game theory is useful, to provide evidence of how humans might be predicted to act absent the restraints of human nature and social institutions and norms."
  • "Compassion and sympathy toward those who are unable to help themselves appear to be as much a part of human nature as the unwillingness to feel much sympathy for shirkers who subsequently seek to share in the social product."
Keywords:
reciprocity
norms
evolution
cultural evolution
cooperation
bioeconomy
altruism
Author(s) / Editor(s):
Published in:
Humane Studies Review
Date:
October 2000
One Paragraph Summary:

Evolutionary psychology has great potential to inform our social sciences and law, but many academics have been hesitant to accept it because of its historical linkage to theories like Social Darwinism and behavioral determinism. A current formulation of evolutionary psychology is inconsistent with both theories. Whether a trait or behavior survives the process of natural or cultural selection has no bearing over our discourse on whether it is morally justified, nor does it mean that any particular human is bound to act in a determined way. The real human advantage is the complex and subtle ways behavior is contingent upon socialization, 'hard-wired' instincts, and the environment. Evolutionary psychologists suggest that we pay close attention to the basic human behaviors that through cross-cultural analysis appear 'hard-wired', because it is these behaviors, such as sympathy for those in pain or identification with one's kin or tribe, that we want to either channel or suppress in order to reap the benefits of cooperation. Evolutionary psychology proposes four mechanisms to explain the evolution of cooperation in nature: kin selection, cooperation for mutual advantage, reciprocal altruism, and group selection.

One Page Summary:

Evolutionary psychology has been portrayed as justifying or implying a lot of bad ideas in the 20th century, but it need not suffer from these mistaken linkages and can potentially shed light on how to build better social institutions. Although the claim has been made, evolutionary psychology is not consistent with the tenets of Social Darwinism. Whether a trait or behavior survives the process of natural or cultural selection has no bearing over our discourse on whether it is morally justified. Nor does it mean that we are determined like machines to act out these behaviors in every case, a theory termed 'behavioral determinism' by those criticizing evolutionary psychology or its earlier form, sociobiology. Any reputable biologist, or sociobiologist, would acknowledge that the fitness of a behavioral trait is dependent on the interaction between that trait and a given environment, so saying that a certain psychological predisposition in humans is the product of an evolutionary process does not mean that it is good, justifiable or useful in the world we live in. Evolutionary science stresses that fitness is fundamentally contingent. Furthermore, humans have a cultural inheritance that dictates in subtle ways how and when we should express or repress our behavioral traits, making the interaction between trait and environment even more complex. Evolutionary psychologists suggest that we pay close attention to the basic human behaviors that through cross-cultural analysis appear 'hard-wired', because it is these behaviors, such as sympathy for those in pain or identification with one's kin or tribe, that we want to either channel or suppress in order to reap the benefits of cooperation.

This article isolates four mechanisms that promote cooperation in the absence of a central authority: kin selection, cooperation for mutual advantage, reciprocal altruism, and group selection. Kin selection implies a kind of utilitarian genetic calculus, that sacrificing one's life for the right number of relatives will be favorable for one's genes. A sibling shares on average half of one's genes, so sacrificing one's life for two or more siblings makes evolutionary sense. An example of a behavior that might be explained by kin selection is the warning call of ground squirrels; a ground squirrel that notices a hawk circling will call out to warn its family, although it increases its likelihood of being noticed and eaten by the hawk. This form of cooperation requires enough brain or nose power to be able to determine who is a relative.

The second form, cooperation for mutual advantage, occurs when a particular given end (critical for survival) is easier to accomplish with a group working together. The quintessential example of this mechanism is group hunting; wolves (and our hunter-gatherer ancestors) hunt in packs because they will end up with a portion of the large game, which can be much larger than the small game they would be able to catch on their own and not have to share. This benefits of this mechanism is not as immediate or certain as those of kin selection, because the stronger hunters could potentially share nothing with the weak who helped. This article cites field studies of monkeys, lions, and fish, which show that group hunting generally only occurs when environmental conditions make it economically more efficient that hunting alone. While cooperation for mutual advantage is an important surplus-generating mechanism in nature, we should not expect this mechanism to form the basis of modern human cooperation. Modern human cooperation cannot be pared down to a single one-shot end, and it could be argued the developments of civilization we are most proud of, charity for the poor or sick, go against the logic of mutual advantage.

Reciprocal altruism looks similar to the mechanism of mutual advantage, except the benefits are spread over time rather than through a single interaction. One individual helps another individual with the expectation that in the future the gesture will be repaid. Reciprocal altruism works best when developed alongside "a large number of supplementary psychological and social institutions." Enduring reputation and social traditions such as gift-giving foster relationships of reciprocal altruism. This kind of a relationship requires a bigger brain to remember who gave you what and who has mooched off you for too long, but can generate a big societal payoff. "By allowing trade over a period of time, reciprocal altruism opens up the possibility of a division of labor and credit-based relationships. These innovations make possible the recognition of the gains from specialization, comparative advantage, and the insurance and risk-shifting elements of inter-temporal trade."

While reciprocal altruism is most compelling in small groups with face-to-face interaction, the final mechanism, group selection, treats populations as the unit of measure. Proponents of group selection argue that a population of individuals with altruistic traits would fare better than less altruistic populations, reaching the big payoffs described in the above paragraph. The traits in question could be genetically inherited or culturally inherited. Arguing for cultural group selection, "[g]roups that adopt 'better' cultural practices will again tend to grow healthier, wealthier, and more populous, gradually supplanting less efficient cultures through conquest, migration, or conscious adoption." This kind of cooperation requires even more specific conditions than the other three mechanisms. Because the scale of group selection is so much larger than the other mechanisms, it is still a controversial theory in natural and social sciences. The argument against cultural and biological group selection is based on problem of free riders without altruistic traits who might take advantage of the social surplus generated by their altruistic neighbors. While human populations have reached impressive levels of cooperation in modern societies, one can imagine natural disasters or devastating world wars that would eliminate the evolutionary strength of group selection.

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