Adversity and cooperation in heterogeneous pairs

Abstract

This paper provides a game-theoretic model of the effect of higher adversity on the evolution of cooperation. The focus lies on how this effect of higher adversity is impacted when there is transient, non-genetic heterogeneity in the form of differences in the players’ capabilities of contributing to the public good, in the benefits they obtain from the public good, or in their cooperation costs. A framework is provided that identifies the common mechanisms that are at work across two models of cooperation (jointly producing a public good, and jointly defending an existing public good), and across the mentioned types of heterogeneity. With relatively small heterogeneity, higher adversity generates a common-enemy effect for large cooperation costs and a deterrence effect for small cooperation costs. Yet, these results on the effect of higher adversity are completely reversed for relatively large heterogeneity.