An Agent-Based Model of Cooperation and Competition in Organizational Systems

Abstract

This study proposes a game-theoretic agent-based model to investigate cooperation and competition in workplace environments. The iterated prisoner’s dilemma is implemented on a two-dimensional lattice, where agents interact locally and accumulate wealth over time. Two types of agents are considered: fixed probabilistic cooperators, who adopt a constant cooperation probability, and adaptive probabilistic cooperators, whose behavior depends on their accumulated wealth and reputation. Population composition and wealth distribution are quantified using Shannon entropy and the Gini coefficient. Numerical simulations show that fixed cooperators tend to predominate and accumulate higher average wealth. The simulations also show that increasing tolerance to defections raises average wealth and reduces inequality. In contrast, a higher cooperation probability increases wealth but may also amplify inequality. These results highlight the role of reputation and performance targets in shaping cooperation in organizational environments.