Game-theoretical analyses of the n-person Prisoner's Dilemma (PD) and of group production have largely ignored the impact of threshold effects on the evolution of cooperation. This article introduces a model where uncooperative action cannot be detected as long as it does not exceed a certain...

A strategy contest in an iterated Prisoner's Dilemma with an exit option after each game is developed. The whole model is assumed to represent the conditions for egoistical cooperation in a large and anonymous society, which is based mainly on exchange relationships and voluntary cooperation...