Modulous (& Jumped up),
It is refreshing to see civil responses and some knowledge of what I'm talking about. The Iterated Prisoner's Dilemma tournament was an extremely simplistic situation. You may already have considered how real life interactions differ but I'll suggest some:
In real life:
1. Entities can pass information and advice to other entities about those who renege.
2. Entities can avoid interaction with those who renege. Conversely, they can deal only with those who cooperate.
3. Entities can de-escalate (or escalate) the ‘punishment’ to those who renege.
4. Entities can use 3rd parties to hold assets in escrow.
5. Entities can form coalitions with other cooperators to shun/ban or even destroy those who renege as well as force them to make restitution..
6. (Add your own)
It seems to me that biological evolution only had a small part to play in the development of ethics/morality. That cultural evolution had a vastly larger role.
The development of law is closely related to that of ethics/morality. John Maxcy Zane was the greatest historian of law at one time and his book The Story of Law was fascinating. Consider that first world nations no longer condone blood feuds, no longer kill a builders son if a house falls on the customer’s son and kills him (Hammurabi‘s law?), do not condone ’honor killings’, do not recognize trial by ordeal, do not condone dueling, do not permit slavery or gladiatorial combat, frown on torture, do not permit the subjugation of women, allow women to own property and vote and divorce, do not execute ’witches’ or heretics/blasphemers/atheists. The list goes on and on.