Generosity and the Emergence of Forgiveness in the Donation Game

Research has shown that cooperative action struggles to emerge in the noisy variant of the donation game, a simple model of noisy multi-agent systems where indirect reciprocity is required to maximise utility. Such noise can arise when agents may have an incorrect view of the reputation of their interaction partners, or when the actions themselves may fail. Concepts such as generosity, as well as the use of higher-order norms, have been investigated as mechanisms to facilitate cooperation in such environments, but often are not effective or require additional assumptions or infrastructure in the system to operate. In this paper, we demonstrate both analytically and empirically that a simple form of generosity when combined with fine grained reputation can help cooperation emerge. We also show that the use of individual forgiveness strategies rather than the presence of global generosity can support cooperation in such environments.