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Extortion - A voracious prosocial strategy.

Manfred Milinski1

  • 1Max-Planck-Institute for Evolutionary Biology, August-Thienemann-Strasse 2, 24306 Plön, Germany.

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PubMed
Summary

Extortion strategies in the Prisoner's Dilemma create a linear score relationship, ensuring partner cooperation for mutual benefit. This prosocial yet self-profiting strategy is adopted by 40% of humans in competitive scenarios.

Keywords:
Asymmetric powerCompetitionCooperationExtortionPrisoner's DilemmaPunishmentZD strategy

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Area of Science:

  • Game Theory
  • Behavioral Economics
  • Evolutionary Psychology

Background:

  • The Prisoner's Dilemma is a fundamental concept in game theory illustrating the conflict between individual self-interest and collective benefit.
  • Traditional strategies often fail to guarantee cooperation, leading to suboptimal outcomes.
  • Press and Dyson introduced a novel class of strategies that alter the payoff structure.

Purpose of the Study:

  • To introduce and analyze the 'extortion' strategy within the Prisoner's Dilemma framework.
  • To investigate the properties of extortion, particularly its ability to enforce cooperation.
  • To examine the prevalence and behavioral underpinnings of extortionate strategies in human interactions.

Main Methods:

  • Theoretical analysis of a new class of strategies enforcing linear score relationships.
  • Modeling the dynamics of the Prisoner's Dilemma with the proposed 'extortion' strategy.
  • Experimental studies observing human choices in competitive and egalitarian game scenarios.

Main Results:

  • The 'extortion' strategy enforces full cooperation from partners by creating a profitable incentive structure.
  • Extortion is a highly effective, near-unbeatable strategy that is also prosocial due to its cooperative nature.
  • Approximately 40% of human participants adopt extortion in competitive settings or when holding power.

Conclusions:

  • Extortion strategies represent a significant advancement in understanding cooperation in strategic interactions.
  • The prosocial yet self-maximizing nature of extortion explains its adoption by a substantial portion of the human population.
  • Human behavior adapts, with a shift towards generous strategies when faced with punishment in egalitarian contexts.