Decision making
Robert Axelrod (1953–)
1859 British biologist Charles Darwin publishes On the Origin of Species, arguing that the best-adapted species are those most likely to survive.
1971 US biologist Robert Trivers publishes The Evolution of Reciprocal Altruism, which shows how altruism and cooperation can benefit individuals.
1986 US economists Drew Fudenberg and Eric Maskin explore cooperation strategies for repeated games.
1994 British economist Kenneth Binmore publishes Playing Fair, using game theory to explore the development of morality.
In 1984, US economist Robert Axelrod wrote The Evolution of Cooperation. It was based on the results of a series of games, in which the strategies of game theory specialists were pitted against each other via computer programs to see which was most successful. The game they played was the prisoner’s dilemma, a game involving two thieves captured by the police. Should each thief choose to confess, stay silent, or “sell out” the other thief? The game explores whether it is wiser to cooperate for mutual benefit or to act selfishly.
Axelrod discovered that cooperation can arise through self-interested actions. His series of games tested many strategies. The most successful strategy was simple tit-for-tat, where a player cooperates on the first move and then mirrors his or her opponent, so is never the first to “sell out.” The most successful approaches were those that were “nice.” Cooperation was found to produce mutually beneficial outcomes. But one must not be too nice—if someone is betrayed, it is essential to hit back in the next move. To maintain credibility, players must retaliate immediately if they are “sold out.” This approach to the analysis of competition and cooperation has developed into a rich field that examines how social and even moral rules emerge.
When President Bush and Russian President Putin signed the Treaty of Moscow in 2002, they cooperated to greatly reduce their nuclear arsenals, despite mutual distrust.
See also: Economic man • Effects of limited competition • Economics and tradition • Game theory