This post concerns another research paper from the Machine Intelligence Research Institute, Robust Cooperation in the Prisoner’s Dilemma: Program Equilibrium via Provability Logic by Patrick LaVictoire et al (5/31/2013 preprint).
Mutual defection is the unique Nash equilibrium in the classical prisoner’s dilemma. It is troubling whenever rational agents pursuing their own self-interest predictably find themselves unhappy with the result, and so variants of the prisoner’s dilemma in which mutual cooperation can be rationally achieved are interesting, and perhaps reassuring. The best known variant is the iterated prisoner’s dilemma, in which the potential for long-term mutual cooperation can outweigh the short-term gains of immediate defection.
As for one-shot prisoner’s dilemmas, Douglas Hofstadter may have been the first to seriously suggest that the standard game-theoretic analysis (in which players’ actions are assumed to be independent) is insufficient. His idea of “superrationality” holds that two players who know they are similar to one other will reason that their decision will be the same, so they ought to cooperate. In this setting, any reasoning favoring cooperation is self-reinforcing, and any reasoning favoring defection is self-defeating. His 1983 account of a casual experiment he ran (fascinating though it may be) failed to exhibit superrationality among humans.
LaVictoire et al investigate agents more reliable and more transparent than humans: computer programs. In their setup, each program has access to the other’s source code while deciding whether to cooperate or defect. They identify several agents which will cooperate with agents similar to themselves but never with a defector. Here, Löb’s theorem is the key ingredient to formalizing the notion that a decision to cooperate with similar agents is self-reinforcing.