Thermodynamics of Cooperation: Cooperative Equilibrium

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Authors: Keith Lostracco
Cited by: 3

Abstract

We prove that in a repeated multi-agent game with energy-denominated payoffs derived from thermodynamic first principles, universal cooperation is the unique Nash equilibrium that simultaneously satisfies Pareto efficiency and welfare maximization. The payoff matrix is not stipulated but constructed from physical parameters (resource energy, friction multipliers, exploitation efficiency, and repair costs), yielding a Prisoner's Dilemma in which mutual defection is net-negative ($P < 0$) rather than merely suboptimal. This structural property drives the cooperation threshold to $\delta^* = 0.363$, substantially below the canonical $0.5$. We prove that defection is evolutionarily unstable, self-extinguishing in friction-coupled networks, and unprofitable even from a single deviation when network effects are included. The friction state variable, encoding the cumulative memory of past violations, enters payoffs endogenously, making punishment self-reinforcing without external enforcement. We explicitly characterize the relationship between these results and established repeated-game theory: the known machinery is the Folk Theorem and ESS analysis; the novel content is the derived payoff matrix, structurally negative mutual defection, equilibrium selection, and endogenous persistent friction.

Fields of Study & Subjects

Evolutionary Game Theory and Cooperation Game Theory and Applications Climate Change Policy and Economics

Publication details

Journal / source
Zenodo (CERN European Organization for Nuclear Research)
Publication date
28 April 2026
Document type
Preprint