Strategy evolution on networks under payoff uncertainty and risk preference

TL;DR

This paper explores how individuals' risk preferences influence the evolution of cooperation on social networks under uncertain payoffs, revealing that risk-averse behavior can promote cooperation.

Contribution

It provides an analytical framework showing how risk preference distributions affect cooperation thresholds and dynamics in networked populations.

Findings

Risk-averse behavior promotes cooperation at the population level.

Variation in risk preference significantly impacts high-degree nodes.

Spatial structure and risk preference jointly influence strategy evolution.

Abstract

Cooperation is a key driver of human social progress. Studies of the evolution of cooperation typically assume a deterministic outcome for social interactions. But in real-world social interactions, interaction outcomes are often subject to stochastic perturbations arising from open environments. Individuals may show different attitudes towards such uncertainty, some are risk-seeking, while others tend to be risk-averse. Here we investigate how risk preference towards uncertain payoffs affects the evolution of cooperation on social networks, where uncertainty originates from random punishment of defectors initiated by cooperators. We provide an analytical treatment of how the distribution of risk preference among individuals alters the threshold required for cooperation. We find that, at the population level, risk-averse behavior promotes or even rescues cooperation. At the node level, variation in risk preference has a significant impact when it occurs on nodes with high degree centrality. When nodes have the same degree centrality, the nodes with lower betweenness centrality exhibit a stronger effect on strategy evolution. Our analysis reveals how risk preference, together with spatial structure, jointly shapes and potentially reverses the evolutionary dynamics of cooperation.