DanArmak comments on Holden's Objection 1: Friendliness is dangerous - Less Wrong
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I think this is reasonably realistic. Let R signify money. Then R can buy other necessary resources.
We can model N teams by letting them play two-player games in succession. For example, any two teams with nearly matched resources would cooperate with each other, producing a single combined team, etc... This may be an interesting problem to solve, analytically or by computer modeling.
You're right. Initially, I thought that the actual values of Uxxx-s will not be important for the decision, as long as their relative preference order is as stated. But this turned out to be incorrect. There are regions of cooperation and defection.
Analytically, I don't a priori expect a succession of two-player games to have the same result as one many-player game which also has duration in time and not just a single round.