Levels of Analysis and the Explanation of the Costs and Benefits of Cooperation

Abstract

In this article we contrast static and dynamic theories of the effects of increasing the costs and benefits of cooperation in a repeated play prisoners' dilemma (PD). Using computer simulation as the methodology, we show that different decision heuristics respond differently to changes in the cost-benefit structure of a PD game, an effect not expected by static theories of cooperation. In addition, one of the heuristics, "win-stay, lose-change,"" displays the pattern of cooperation predicted by static theories, but the underlying mechanisms are qualitatively different from those assumed in the static theory. This demonstration raises questions about the external validity of the different types of social psychological theory.