Evolution of Cooperation in an Incentive Based Business Game Environment

Abstract

This paper discusses our investigation into the evolution of cooperative players in an online business environment. We explain our design of an incentive based system with its foundation over binary reputation system whose proportion of reward or punishment is a function of transaction value and the players past history of cooperation. We compare the evolution of cooperation in our setting with non-incentive based environment and our findings show that the incentive based method is more suitable for the evolution of trustworthy players.