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Cooperation games show poor agents benefit from relative wealth, not absolute. Simulations reveal survival thresholds and risk aversion are key for the poor, impacting cooperation strategies and societal wealth distribution.

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Area of Science:

  • Game Theory
  • Behavioral Economics
  • Computational Social Science

Background:

  • Cooperation games often assume uniform benefits, but wealth disparities can alter agent incentives.
  • Previous research indicates wealth influences optimal strategies in games like Chicken and Prisoner's Dilemma.
  • The applicability of wealth-dependent strategies in public goods games with fixed payoffs remains underexplored.

Purpose of the Study:

  • To investigate how relative wealth impacts cooperation strategies for poor and wealthy agents.
  • To analyze the effect of survival thresholds on cooperation decisions in wealth-accumulating games.
  • To compare the performance of different strategies, including Tit-for-Tat, under varying risk conditions.

Main Methods:

  • Empirical comparison of published Prisoner's Dilemma and public goods game results.
  • Agent-based simulation using the Farmer's Game, an Iterated Prisoner's Dilemma with wealth accumulation and a survival threshold.
  • Evaluation of Tit-for-Tat and its variants, alongside strategy mixes, under different payoff schemes.

Main Results:

  • Poor agents prioritize survival, influencing their cooperative choices, especially near risk thresholds.
  • Low-risk strategies and forgiveness in Tit-for-Tat variants improve survival rates for the poor.
  • Mixed strategy approaches outperform single strategies, but can lead to abrupt social collapse.
  • Simulations reveal links between cooperation, wealth accumulation, and non-egalitarian wealth distributions.

Conclusions:

  • Relative wealth significantly alters cooperation dynamics, particularly for agents facing survival risks.
  • Risk aversion and adaptive strategies are crucial for the poor in wealth-accumulating cooperation games.
  • Cooperative systems can inadvertently foster or exacerbate societal wealth inequalities.