I'm sharing a comment from Reddit here because I think this will be a common response.
...You lost me at this sentence:
The core issue is the assumption of independence between the players.
That assumption is built into what the prisoner’s dilemma is. If the independence of the players is not there, it as a genuinely different game. This is either because the utilities are shifted in some way (either by external forces like a threat by the mob, a contract), or by one’s own ethical sense (violation of one’s ethics can be compiled into loss of utility in players u
Again, from Reddit:
... (read more)