Using misperception to counteract noise in the iterated prisoner's dilemma

Abstract

The Iterated Prisoner's Dilemma is a game-theoretical model which can be identified in many repeated real-world interactions between competing entities. The Tit for Tat strategy has been identified as a successful strategy which reinforces mutual cooperation, however, it is sensitive to environmental noise which disrupts continued cooperation between players to their detriment. This paper explores whether a population of Tit for Tat players may evolve specialised individual-based noise to counteract environmental noise. We have found that when the individual-based noise acts similarly to forgiveness it can counteract the environmental noise, although excessive forgiveness invites the evolution of exploitative individual-based noise, which is highly detrimental to the population when widespread. © Springer-Verlag Berlin Heidelberg 2009.