Collaborative hierarchy maintains cooperation in asymmetric games.

Area of Science:

• Behavioral Economics
• Social Psychology
• Game Theory

Background:

• Cooperative behavior is crucial in social contexts, with social structures significantly influencing its evolution.
• Previous research indicated that competitive social hierarchies negatively affect the development of cooperation.

Purpose of the Study:

• To investigate how different methods of establishing social hierarchies affect cooperative behavior.
• To determine if group-based versus individual-based performance rankings influence cooperation differently.

Main Methods:

• Participants engaged in a Public Goods Game to establish hierarchical rankings.
• Two treatments were used: ranking based on group earnings and ranking based on individual earnings.
• Following ranking, participants played asymmetric Prisoner's Dilemma games with rank-dependent payoffs.

Main Results:

• Hierarchies established through group performance showed no detrimental effect on cooperation.
• Hierarchies based on individual performance led to a significant decrease in cooperation.
• Participants interpreted rankings as reputation, influencing their cooperative decisions in subsequent interactions.

Conclusions:

• The method of hierarchy establishment is critical for its impact on cooperation.
• Group-based performance hierarchies can coexist with cooperation, unlike individual-based ones.
• Reputational information conveyed by social rank influences cooperative behavior.