Evolutionary stability and resistance to cheating in an indirect reciprocity model based on reputation

TL;DR

This paper analyzes the stability of third-order reputation strategies in indirect reciprocity, revealing conditions under which honest populations resist cheaters, influenced by witnessing probabilities and a Hamilton-like rule.

Contribution

It systematically identifies evolutionarily stable third-order strategies and introduces a Hamilton-like rule governing resistance to cheaters in reputation-based models.

Findings

Stable strategies resist invasions by similar moral assessment strategies.

Cheaters can invade stable populations when the probability of being witnessed is low.

The resistance to cheaters depends on a Hamilton-like rule involving discovery probability.

Abstract

Indirect reciprocity is one of the main mechanisms to explain the emergence and sustainment of altruism in societies. The standard approach to indirect reciprocity are reputation models. These are games in which players base their decisions on their opponent's reputation gained in past interactions with other players (moral assessment). The combination of actions and moral assessment leads to a large diversity of strategies, thus determining the stability of any of them against invasions by all the others is a difficult task. We use a variant of a previously introduced reputation-based model that let us systematically analyze all these invasions and determine which ones are successful. Accordingly we are able to identify the third-order strategies (those which, apart from the action, judge considering both the reputation of the donor and that of the recipient) that are evolutionarily stable. Our results reveal that if a strategy resists the invasion of any other one sharing its same moral assessment, it can resist the invasion of any other strategy. However, if actions are not always witnessed, cheaters (i.e., individuals with a probability of defecting regardless of the opponent's reputation) have a chance to defeat the stable strategies for some choices of the probabilities of cheating and of being witnessed. Remarkably, by analyzing this issue with adaptive dynamics we find that whether a honest population resists the invasion of cheaters is determined by a Hamilton-like rule---with the probability that the cheat is discovered playing the role of the relatedness parameter.