Realistic gossip in Trust Game on networks: the GODS model
Jan Majewski, Francesca Giardini
TL;DR
The paper tackles the realism gap in gossip-driven reputation for cooperation on networks by introducing GODS, an agent-based model that couples localized triadic gossip on empirical signed networks with Trust Game dynamics. It explicitly models direct experiences via $I$ and gossip-based reputations via $R$, and compares parallel versus triadic information diffusion under well-mixed, static, and dynamic network regimes, using parameters such as $ abla$ (gossip weighting) and $\\omega$. Key findings show that while perfect information maximizes cooperative success for Cs, realistic triadic gossip often yields growth in resources but amplifies inequalities and requires favorable thresholds; dynamic networks provide the strongest boost to cooperation and Cs' resource share. Overall, the work demonstrates that information structure—local, selective gossip versus global information—profoundly shapes cooperation, growth, and inequality, with practical implications for reputation systems and organizational design.
Abstract
Gossip has been shown to be a relatively efficient solution to problems of cooperation in reputation-based systems of exchange, but many studies don't conceptualize gossiping in a realistic way, often assuming near-perfect information or broadcast-like dynamics of its spread. To solve this problem, we developed an agent-based model that pairs realistic gossip processes with different variants of Trust Game. The results show that cooperators suffer when local interactions govern spread of gossip, because they cannot discriminate against defectors. Realistic gossiping increases the overall amount of resources, but is more likely to promote defection. Moreover, even partner selection through dynamic networks can lead to high payoff inequalities among agent types. Cooperators face a choice between outcompeting defectors and overall growth. By blending direct and indirect reciprocity with reputations we show that gossiping increases the efficiency of cooperation by an order of magnitude.
