Collaboration and Conflict between Humans and Language Models through the Lens of Game Theory
This provides a foundation for understanding language model cooperation in mixed human-AI environments, though it is incremental by focusing on a specific game-theoretic context.
The paper investigated language model behavior in the iterated prisoner's dilemma, finding that they perform on par with or exceed classical strategies and adapt rapidly to opponent changes within a few rounds.
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.