Cooperation In Heterogeneous Population

This paper analyzes a heterogeneous population in which selfish players and fair players are spatially distributed, and they are randomly and repeatedly matched to play a prisoner`s dilemma. Players are assumed to behave in a myopic manner. By introducing the random experimentation of fair players, we show that the system described by a Markov process converges to a best possible equilibrium in the long run. Simulation results show that the structure of interactions plays an important role in determining the long-run cooperation rate.