defection
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Breaking Algorithmic Collusion in Human-AI Ecosystems
Collina, Natalie, Arunachaleswaran, Eshwar Ram, Jagadeesan, Meena
AI agents are increasingly deployed in ecosystems where they repeatedly interact not only with each other but also with humans. In this work, we study these human-AI ecosystems from a theoretical perspective, focusing on the classical framework of repeated pricing games. In our stylized model, the AI agents play equilibrium strategies, and one or more humans manually perform the pricing task instead of adopting an AI agent, thereby defecting to a no-regret strategy. Motivated by how populations of AI agents can sustain supracompetitive prices, we investigate whether high prices persist under such defections. Our main finding is that even a single human defection can destabilize collusion and drive down prices, and multiple defections push prices even closer to competitive levels. We further show how the nature of collusion changes under defection-aware AI agents. Taken together, our results characterize when algorithmic collusion is fragile--and when it persists--in mixed ecosystems of AI agents and humans.
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Collaboration and Conflict between Humans and Language Models through the Lens of Game Theory
Singh, Mukul, Radhakrishna, Arjun, Gulwani, Sumit
Language models are increasingly deployed in interactive online environments, from personal chat assistants to domain-specific agents, raising questions about their cooperative and competitive behavior in multi-party settings. While prior work has examined language model decision-making in isolated or short-term game-theoretic contexts, these studies often neglect long-horizon interactions, human-model collaboration, and the evolution of behavioral patterns over time. In this paper, we investigate the dynamics of language model behavior in the iterated prisoner's dilemma (IPD), a classical framework for studying cooperation and conflict. We pit model-based agents against a suite of 240 well-established classical strategies in an Axelrod-style tournament and find that language models achieve performance on par with, and in some cases exceeding, the best-known classical strategies. Behavioral analysis reveals that language models exhibit key properties associated with strong cooperative strategies - niceness, provocability, and generosity while also demonstrating rapid adaptability to changes in opponent strategy mid-game. In controlled "strategy switch" experiments, language models detect and respond to shifts within only a few rounds, rivaling or surpassing human adaptability. These results provide the first systematic characterization of long-term cooperative behaviors in language model agents, offering a foundation for future research into their role in more complex, mixed human-AI social environments.
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Hierarchy Entropy Degeneration Explains the Rat Utopia Population Collapse: The Role of Full Visibility and Isolation
Calhoun's Rat Utopia experiments demonstrated a puzzling population trajectory: initial growth, plateau, and eventually a total collapse of the rat population despite abundant resources. This paper proposes a hypothesis that the enclosure's design enabled full visibility of the social hierarchy (pecking order), leading to entropy degeneration: progressive loss of uncertainty in rats' perceived ranks over generations. High initial uncertainty drives engagement in dominance, reproduction, and care; as visibility solidifies the hierarchy over the generations, uncertainty vanishes, nullifying perceived gains from social activities. Simulations reproduce the experimental arc which rely on a game theoretic matrix that is parameterized by the uncertainty (entropy) in the hierarchy which changes over rat generations.
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Strategic Intelligence in Large Language Models: Evidence from evolutionary Game Theory
Payne, Kenneth, Alloui-Cros, Baptiste
Are Large Language Models (LLMs) a new form of strategic intelligence, able to reason about goals in competitive settings? We present compelling supporting evidence. The Iterated Prisoner's Dilemma (IPD) has long served as a model for studying decision-making. We conduct the first ever series of evolutionary IPD tournaments, pitting canonical strategies (e.g., Tit-for-Tat, Grim Trigger) against agents from the leading frontier AI companies OpenAI, Google, and Anthropic. By varying the termination probability in each tournament (the "shadow of the future"), we introduce complexity and chance, confounding memorisation. Our results show that LLMs are highly competitive, consistently surviving and sometimes even proliferating in these complex ecosystems. Furthermore, they exhibit distinctive and persistent "strategic fingerprints": Google's Gemini models proved strategically ruthless, exploiting cooperative opponents and retaliating against defectors, while OpenAI's models remained highly cooperative, a trait that proved catastrophic in hostile environments. Anthropic's Claude emerged as the most forgiving reciprocator, showing remarkable willingness to restore cooperation even after being exploited or successfully defecting. Analysis of nearly 32,000 prose rationales provided by the models reveals that they actively reason about both the time horizon and their opponent's likely strategy, and we demonstrate that this reasoning is instrumental to their decisions. This work connects classic game theory with machine psychology, offering a rich and granular view of algorithmic decision-making under uncertainty.
Who's Driving? Game Theoretic Path Risk of AGI Development
Who controls the development of Artificial General Intelligence (AGI) might matter less than how we handle the fight for control itself. We formalize this "steering wheel problem" as humanity's greatest near-term existential risk may stem not from misaligned AGI, but from the dynamics of competing to develop it. Just as a car crash can occur from passengers fighting over the wheel before reaching any destination, catastrophic outcomes could arise from development competition long before AGI exists. While technical alignment research focuses on ensuring safe arrival, we show how coordination failures during development could drive us off the cliff first. We present a game theoretic framework modeling AGI development dynamics and prove conditions for sustainable cooperative equilibria. Drawing from nuclear control while accounting for AGI's unique characteristics, we propose concrete mechanisms including pre-registration, shared technical infrastructure, and automated deterrence to stabilize cooperation. Our key insight is that AGI creates network effects in safety: shared investments become more valuable as participation grows, enabling mechanism designs where cooperation dominates defection. This work bridges formal methodology and policy frameworks, providing foundations for practical governance of AGI competition risks.
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Dynamics of Adversarial Attacks on Large Language Model-Based Search Engines
The increasing integration of Large Language Model (LLM) based search engines has transformed the landscape of information retrieval. However, these systems are vulnerable to adversarial attacks, especially ranking manipulation attacks, where attackers craft webpage content to manipulate the LLM's ranking and promote specific content, gaining an unfair advantage over competitors. In this paper, we study the dynamics of ranking manipulation attacks. We frame this problem as an Infinitely Repeated Prisoners' Dilemma, where multiple players strategically decide whether to cooperate or attack. We analyze the conditions under which cooperation can be sustained, identifying key factors such as attack costs, discount rates, attack success rates, and trigger strategies that influence player behavior. We identify tipping points in the system dynamics, demonstrating that cooperation is more likely to be sustained when players are forward-looking. However, from a defense perspective, we find that simply reducing attack success probabilities can, paradoxically, incentivize attacks under certain conditions. Furthermore, defensive measures to cap the upper bound of attack success rates may prove futile in some scenarios. These insights highlight the complexity of securing LLM-based systems. Our work provides a theoretical foundation and practical insights for understanding and mitigating their vulnerabilities, while emphasizing the importance of adaptive security strategies and thoughtful ecosystem design.
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