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Nice, forgiving, and retaliatory strategy

The Wisdom of Crowds

The Nice, forgiving, and retaliatory strategy describes a way to sustain cooperation over repeated encounters: start by cooperating, punish noncooperation when it occurs, and remain willing to forgive. In Robert Axelrod’s account, the continuing possibility of dealing with one another gives cooperation its force. The book presents this as a powerful explanation of cooperation among familiar partners, but not a complete account of why people also cooperate with strangers or enforce fairness when no future reward is available.

The logic of repeated interaction

The classic explanation is that people who repeatedly deal with one another learn the benefits of cooperation and refrain from taking advantage because defection can be punished in later encounters. The relationship’s durability matters more than trust by itself: the prospect of continuing interaction makes present conduct consequential. Axelrod calls this incentive the shadow of the future.

The strategy’s sequence matters. It begins with a willingness to cooperate rather than with immediate hostility, but it does not make cooperation unconditional. Noncooperative behavior is to be punished as soon as it appears; forgiveness, however, remains part of the approach. The resulting balance—being nice, forgiving, and retaliatory—offers a rule for maintaining a stable cooperative pattern rather than treating every encounter as an isolated calculation.

Where the explanation falls short

The book treats Axelrod’s account as sensible and likely descriptive of how people deal with those they know, while questioning whether repeated interaction can explain cooperation as a whole. In the ultimatum game, for example, a responder who rejects an unfair offer encounters the proposer only once. The rejection cannot serve as a lesson intended to improve a later offer from that same person. Yet responders still punish what they regard as unfairness, suggesting that the shadow of the future alone does not account for their behavior.

The broader puzzle is cooperation with strangers. People donate to charities, buy goods on eBay without seeing them first, and share songs through Kazaa even though doing so offers no direct benefit to the uploader and gives strangers access to their computer hard drives. These examples extend beyond a strategy grounded in durable personal relationships. The book therefore distinguishes the value of Axelrod’s account from its limits: repeated dealings can help explain cooperation among regular partners, but they do not fully explain prosocial conduct toward people one may never meet again.

Cooperation beyond a strategic bargain

The strategy illuminates one route by which individually self-interested people can sustain mutually beneficial behavior: future dealings make present defection costly. But the book’s contrast with one-shot fairness and stranger-to-stranger cooperation leaves open a wider question. If people cooperate even without an obvious personal payoff or a continuing relationship, cooperation cannot be reduced to the expectation of later reward and retaliation. The strategy is thus both a practical account of durable cooperation and a boundary marker for explanations that seek to encompass social life more generally.