Well, normally if you are dealing with a company as a partner, it's a company for which the partnerships are a huge factor - e.g. in my case re-distributors.

The iterated prisoner's dilemma is an oversimplified problem. In the real world, usually, the non-cooperative players are known for their non-cooperative behaviours try channels other than getting screwed over yourself.

Furthermore, there are disparity of force cases where everyone's defecting against other party, just because other side can not retaliate. E.g. you could of paid me $0.5 per day to do the work I normally do, if I had no computer of my own or ability to go work at other employer, and I would have to do the work while barely surviving - and you could then pocket well over 99% of the income. That's how it works with outsourcing to third world.