Figure 1
From: Reputation structure in indirect reciprocity under noisy and private assessment
Schematics of indirect reciprocity with private reputation. In every round, a donor (\(i_D\)) and a recipient (\(i_R\)) are randomly chosen. A goodness of the recipient in the present round is given by \(p_{i_R}\). In other words, the recipient’s reputation in the eyes of a random observer is good (resp. bad) with probability \(p_{i_R}\) (resp. \(1-p_{i_R}\)). The donor chooses cooperation (resp. defection) with the recipient if the recipient’s reputation in the eyes of the donor is good (resp. bad). After the interaction, each observer independently assigns a new reputation to the donor by taking into account whether the donor took cooperation or defection and whether the recipient’s reputation in the eyes of that observer was good or bad before the interaction. As a result, the goodness of the donor is updated to \(p'_{i_D}\).
