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Stable cooperation emerges in stochastic multiplicative growth.

Lorenzo Fant1,2, Onofrio Mazzarisi3, Emanuele Panizon4

  • 1International School for Advanced Studies (SISSA), Via Bonomea 265, 34136 Trieste, Italy.

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Cooperation can emerge and remain stable even with environmental fluctuations. Sharing resources as a public good benefits individuals by mitigating risks from unpredictable changes, especially over long periods.

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Area of Science:

  • Evolutionary biology
  • Game theory
  • Behavioral economics

Background:

  • Cooperation is crucial across many disciplines, but its stability against exploitation remains a challenge.
  • Few mechanisms ensure cooperation's robustness to cheating and environmental variability.

Purpose of the Study:

  • To introduce a novel mechanism for cooperation's emergence and stability.
  • To investigate cooperation under stochastic wealth fluctuations and long-time horizons.

Main Methods:

  • Agent-based modeling with stochastic multiplicative wealth changes.
  • Analysis of resource sharing as a public good.
  • Examination of individual-level benefits under fluctuating environments.

Main Results:

  • Cooperation emerges and is evolutionarily stable despite environmental fluctuations.
  • Sharing resources as a public good provides individual advantages.
  • Long-time horizons amplify the benefits of cooperation in screening against environmental risks.

Conclusions:

  • Environmental fluctuations do not preclude cooperation; they can even promote it.
  • Cooperation offers an adaptive strategy for individuals facing stochasticity.
  • This mechanism provides a new perspective on the stability of cooperation in diverse systems.