Is Indirect Reciprocity Undermined by Noise in Social Dilemmas? A Psychological Approach to Reputation

Why do people engage in costly cooperation with unknown others that they will never meet again? Answers to this evolutionary puzzle emphasize the role of indirect reciprocity (i.e., cooperation through reputation), whereby cooperation is not reciprocated by the recipient but by other members of the society. The present research examines whether the effect of indirect reciprocity may be substantially smaller in situations challenged by negative noise – when actual or perceived behavior is less cooperative than intended. Consistent with hypotheses, results revealed that the positive effects of reputation on cooperation and impressions of the partner observed under noise-free conditions, were completely eliminated under conditions of negative noise. These findings indicate that the positive effects of indirect reciprocity may not generalize to realistic, noisy circumstances, suggesting that indirect reciprocity is not the only answer to “why people cooperate with strangers”.