In this paper I study conditions for the emergence of cooperativebehavior in a dynamic model of population interaction.The model has finitely many individuals located on a circle. The pay-off of each individual is partly based on the (local)interaction with neighbors and partly on (uniform) interaction withthe whole population. The dynamics is driven byimitative behavior. I show that for a large class of parameterscooperation will emerge if the population is large; if thepopulation is small, defection will prevail in the long run. Theresult contrasts with conventional wisdom which says that thelarger the population, the less likely cooperation will be.
Cooperation Prisoner's Dilemma Evolutionary Game Theory Local Interaction