3 Experiments
Four mini-pilots verify the governance MVP. C1 (3 players, \(N = 5\) seeds) checks that the sanction mechanism fires deterministically against detected violations. D1 (6 players, \(N = 5\) seeds) decomposes the effect of agent architecture and cheap-talk communication at the canonical BDPD\(^0\) cliff configuration via a \(2 \times 2\) factorial design. D2 (5 players, \(N = 5\) seeds) compares graduated vs flat sanctioning under identical pact and LLM conditions. D3 (5 players, \(N = 5\) seeds) sweeps the shape of the graduated ladder to isolate which feature of the \([1, 3, 10]\) baseline carries the D2 effect.
The four pilots span two substrate calibrations. D1 reuses the canonical BDPD\(^0\) cliff (\(K = 150\), \(r = 0.12\), 6 players) so the architecture-vs-talk decomposition is directly comparable with the baseline cliff finding. C1, D2, and D3 use a tighter substrate (\(K = 100\), \(r = 0.10\), 3–5 players) because the sanction perturbations extend run length significantly and a smaller commons keeps each pilot runnable in \(\le 30\) turns on a single seed while preserving the qualitative cliff dynamics. Table 3.1 summarises the four configurations side-by-side.
deepseek-v4-flash (thinking off) on LLM cells. Player composition is given as conservative + aggressive archetypes. Tool surface refers to the cheap-talk and pact primitives exposed to LLM agents; “none” means an empty tool list (built-in agents, or the --no-talk LLM cell).
| Pilot | Players (c+a) | K | r | Tool surface | Sanction | Question tested |
|---|---|---|---|---|---|---|
| C1 | 3 (2+1) | 100 | 0.10 | full | flat 3 | mechanism: do sanctions fire 1:1 on detected violations? |
| D1 | 6 (5+1) | 150 | 0.12 | A: none, B: full, C: none | off | architecture vs cheap-talk at the cliff |
| D2 | 5 (4+1) | 100 | 0.10 | full | A: ladder [1,3,10], B: flat 3 | graduated vs flat sanctioning |
| D3 | 5 (4+1) | 100 | 0.10 | full | [1,2,4], [1,5,25], [5,5,5] | escalation shape vs raw amount |
All LLM-driven runs use deepseek-v4-flash with thinking disabled, temperature 0.4, and the platform default prompt. They live on a single host with one Python subprocess per LLM-driven player. C1 sweeps the legacy seed set \(\{17, 42, 123, 456, 789\}\) from its pre-standardisation mechanism check; D1, D2, and D3 sweep the project anchor set \(\{17, 23, 29, 31, 37\}\) (5 primes including the BDPD\(^0\) anchor seed 17) so the three D-pilots are seed-aligned for the preservation table in Chapter 4. Source scripts:
scripts/pilot_{c1,d1_n5,d1_cell_c,
d2_llm_n5,d2_ladder_sweep}.mjsscripts/plot_{d1_n5,d2_llm_n5,
d2_ladder_sweep}.py
Raw artefacts are regenerated under data/pilot/{c1,d1_n5,d1_cell_c,d2_llm_n5,d2_ladder_sweep}/ when the scripts are run with DEEPSEEK_API_KEY set; this directory is intentionally git-ignored (runtime artefacts, not versioned).
3.1 C1 — Sanction mechanism in silico
An \(N = 5\) mini-pilot that the sanction perturbation fires deterministically against detected pact violations.
3.1.1 Setup
| Parameter | Value |
|---|---|
| Players | 3 (alice, bob conservative; carol aggressive) |
| Initial private capital | \(30\) per player (so the \(\text{amount} = 3\) sanction is \(10\%\) of starting wealth) |
| Commons | \(K = 100\), initial \(= 50\), \(r = 0.10\), threshold \(= 10\) |
| Pre-injected pact | harvest_cap, maxHarvest = 0.5, all three parties accept |
| Sustainable share | \(\approx 0.83\) per player at \(T_1\) (cap is below it) |
| Sanction | pact_violation(harvest_cap) \(\to\) amount = 3 |
| Max turns | 7 |
| Seeds | \(\{17, 42, 123, 456, 789\}\) |
The cap is set below the sustainable share, so honouring it is a strict cost.
3.1.2 Result
The mechanism fires 1:1 in every seed: a per-seed total of \(3 \pm 1.8\)1 detected violations across the three players (carol \(2.8 \pm 1.7\), bob \(0.2 \pm 0.4\), alice \(0\); range \(1\)–\(6\)) produced an equal count of sanction events.
| Player | Harvested (\(\mu \pm \sigma\)) | Violations | Sanctions | Final wealth (\(\mu \pm \sigma\)) |
|---|---|---|---|---|
alice (conservative) |
\(3.5 \pm 0.0\) | \(0.0 \pm 0.0\) | \(0.0 \pm 0.0\) | \(\mathbf{33.50 \pm 0.00}\) |
bob (conservative) |
\(3.8 \pm 0.6\) | \(0.2 \pm 0.4\) | \(0.2 \pm 0.4\) | \(33.16 \pm 0.59\) |
carol (aggressive) |
\(7.9 \pm 2.0\) | \(2.8 \pm 1.7\) | \(2.8 \pm 1.7\) | \(29.46 \pm 3.54\) |
Two qualitative observations are worth recording. First, carol violates in every seed (range \(1\)–\(6\) violations), typically opening with a turn or two at the cap before defecting. The cumulative monetary loss therefore grows with each repeated violation under a constant-amount sanction, producing a graduation-like effect on the violator’s wealth path without any explicit ladder; this is the implementation-incidental cousin of the graduated-sanction principle (Ostrom #5), not a deliberate ladder. Second, the conservative players are largely but not perfectly insulated from a defector: alice held the cap in every seed (\(0\) violations), while bob slipped on a single seed (\(1\) violation vs \(0\) in the other four). We avoid claiming a strong analogy to BDPD\(^0\)’s reactive < conservative finding here: the mechanism is different (pact-violation rather than harvest-reaction) and the LLM cognitive substrate adds its own sources of seed-level variance. The contagion-like pattern is seed-variable rather than universal, which is itself informative: the conservative archetype’s behavioural prior is robust on average but not deterministic.
3.1.3 Diagnosis
The sanction layer is operational: each detected violation produces exactly one sanction event (the 1:1 firing reported above), so the detection-to-sanction chain never leaks. The sanction_rate metric (sanctioned players over nPlayers, i.e. \(\approx k/N\) for \(k\) players sanctioned on a turn) is non-zero on every violation turn and moves dynamically through the run. Mechanism verified.
3.2 D1 — Architecture vs communication at the cliff
The original D1 design compared built-in agents (no talk) against LLM agents (with talk), varying two factors simultaneously — agent architecture and communication channel — confounding the two effects. Cell C — LLM agents with the cheap-talk tool surface disabled (--no-talk) — was added to decompose them. The three cells form an incomplete \(2 \times 2\) factorial:
| No talk | Talk | |
|---|---|---|
| Built-in | Cell A | (empty — built-in agents cannot use language) |
| LLM | Cell C | Cell B |
The design is a structurally incomplete \(2 \times 2\): the built-in + talk cell is not implemented in this study. A heuristic agent could in principle be equipped with a fixed broadcast template (e.g. “I plan to harvest \(X\)”) and so participate in the talk channel mechanically, but the resulting messages would not be adaptive signals — they would simply replay the agent’s deterministic strategy — and the comparison would conflate mechanical broadcasting with adaptive cheap talk. We treat that cell as out of scope rather than impossible. This makes the present design a decomposition layout, not a classical ANOVA factorial. It isolates the main effect of architecture (A vs C) and the marginal effect of talk given LLM agents (C vs B), but cannot estimate the architecture \(\times\) talk interaction.
3.2.1 Setup
All three cells run at the canonical BDPD\(^0\) cliff, replicated across \(N = 5\) seeds:
| Parameter | Cell A | Cell B | Cell C |
|---|---|---|---|
| Players | 6 built-in | 6 LLM | 6 LLM |
| Archetypes | 5 cons. + 1 aggr. | 5 cons. + 1 aggr. | 5 cons. + 1 aggr. |
| Engine | logistic |
logistic |
logistic |
| \(K\) | 150 | 150 | 150 |
| \(r\) | 0.12 | 0.12 | 0.12 |
| Threshold | 10 | 10 | 10 |
| Max turns | 30 | 30 | 30 |
| Tool surface | none | full cheap-talk + pact | none (--no-talk) |
| Sanctioning | OFF | OFF | OFF |
| Seeds | \(\{17, 23, 29, 31, 37\}\) | same | same |
Cell A is fully deterministic: the five seeds produced identical trajectories (collapse to a residual \(4.39\)-unit stock at \(T = 24\)). Cell C agents use the same LLM, prompt, and memory as Cell B but receive no communication tools and no announced field in the response schema — they can observe their peers’ harvests but cannot signal intentions.
3.2.2 Result
Figure 3.1 shows the headline trajectories. Metrics across the three cells are collected in Table 3.2:
silent_defection value (\(0.72\)) is the built-in aggressor’s fixed over-harvest fraction — well-defined, but reported for completeness rather than as a channel-based rate comparable to Cell B. Cell C silent_defection is non-comparable (n/c): without an announcement channel, every over-harvester is mechanically “silent”. Cell B’s low \(\sigma\) on silent_defection (\(0.07\)) may reflect the binary nature of the announcement channel rather than a causal relationship with preservation.
| Metric | Cell A (builtin) | Cell B (LLM + talk) | Cell C (LLM, no talk) |
|---|---|---|---|
| Turns survived | \(24 \pm 0\) | \(24 \pm 5\) | \(29.8 \pm 0.4\) |
| Reached \(T = 30\) | 0 / 5 | 2 / 5 | 4 / 5 |
| Final commons stock | \(4.4 \pm 0\) | \(23 \pm 26\) | \(28 \pm 26\) |
cooperation_index \(\mu\) |
\(0.28\) | \(0.43 \pm 0.10\) | \(0.50 \pm 0.03\) |
announce_frequency \(\mu\) |
\(0\) | \(0.50 \pm 0.06\) | \(0\) (no channel) |
silent_defection \(\mu\) |
\(0.72\) | \(0.38 \pm 0.07\) | n/c (no channel) |
lie_score \(\mu\) |
n/a | \(0.001\) (max \(0.003\)) | n/a |
| Aggressor final wealth | \(139\) | \(119 \pm 19\) | \(177 \pm 20\) |
| Mean conservator wealth | \(53.0\) | \(54.4 \pm 3.1\) | \(46.6 \pm 1.7\) |
The factorial decomposition yields three findings.
Architecture is the dominant effect. The transition from built-in to LLM agents without any communication (A \(\to\) C) raises cooperation_index from \(0.28\) to \(0.50\) and extends the game from \(24\) to \(\sim 30\) turns. The cooperation lift is entirely architectural: LLM agents, given only harvest observations, already extract more conservatively than the heuristic baseline. This is consistent with independent evidence that LLMs exhibit intrinsic prosocial tendencies in canonical strategic games, cooperating well above human baselines even without communication (e.g. \(\sim 65 \%\) vs \(\sim 37 \%\) in the prisoner’s dilemma (Brookins and DeBacker 2024)).
Cheap-talk does not improve commons preservation. Comparing Cell C (LLM, no talk) against Cell B (LLM, with talk), the final stock is \(28 \pm 26\) vs \(23 \pm 26\) — a difference of \(\sim 5\) units against a pooled \(\sigma\) of \(\sim 26\) (Cohen’s \(d = 0.17\)). The effect, if real, is negligible; a power analysis yields \(n \approx 540\) per cell to detect it at \(80\%\) power. cooperation_index is marginally lower in Cell B (\(0.43\)) than in Cell C (\(0.50\)), confirming that adding the talk channel does not make agents cooperate more. This null contrasts with classic collective-risk experiments where communication helps groups coordinate toward a shared threshold (Milinski et al. 2008): on the BDPD cliff the threshold is not collective but individual — a single aggressor suffices — and communication cannot deter a player whose privately optimal strategy is over-extraction regardless of what others say.
Talk redistributes wealth, not commons. The aggressor’s final wealth drops from \(177\) (Cell C) to \(119\) (Cell B) — a \(\sim 33\%\) reduction. Conservators’ mean wealth rises from \(46.6\) to \(54.4\) (\(\sim +17\%\)). The pattern is consistent with a coordination mechanism: conservators use the broadcast channel to signal against the defector, reducing the defector’s relative advantage. Talk is an instrument of equity rather than preservation.
Lying does not emerge. Cell B’s lie_score is essentially zero (mean \(0.001\), max \(0.003\) across seeds; \(3\) of \(5\) seeds exactly \(0\)): when LLM agents announce, they honour the announcement essentially perfectly.
3.2.3 Diagnosis
At the canonical cliff configuration, the original two-cell design confounded two effects. Cell C resolves the confound: the cooperation lift attributed to cheap-talk in the original analysis is in fact an architectural effect of switching from heuristic to LLM agents. Cheap-talk alone does not improve commons preservation at this scale, but it does redistribute wealth from the defector to the conservators. The natural next question — does adding an enforcement layer produce a clean preservation signal? — is exactly what D2 tests.
3.3 D2 — Graduated sanctions in silico (Ostrom #5)
Does a graduated sanction ladder preserve the commons more reliably than a flat sanction of equivalent expected cost?
3.3.1 Setup
Two cells side-by-side under LLM cognition, identical except for the shape of the sanction triggered on a pact_violation:
| Parameter | Cell A (graduated) | Cell B (constant) |
|---|---|---|
| Players | 5 LLM (4 conservative + 1 aggressive) | same |
| Engine | logistic, \(K=100\), \(r=0.10\) |
same |
| Commons initial | 80 | same |
| Threshold | 10 | same |
| Max turns | 30 | same |
| Pre-injected pact | harvest_cap, \(\text{maxHarvest}=2.0\), 5 parties accept |
same |
| Sanction trigger | pact_violation(harvest_cap) |
same |
| Sanction payload | ladder = [1, 3, 10] (per ordinal) |
amount = 3 (flat) |
| Seeds | \(\{17, 23, 29, 31, 37\}\) | same |
| Model | deepseek-v4-flash no-think |
same |
The cap is above the conservative archetype’s natural harvest at ratio \(> 0.6\) (\(\approx 1.5\)) and below the aggressive archetype’s (\(\approx 2.5\)). Conservatives can honour the cap costlessly; aggressors face a real cost. The two cells differ only in whether the sanction amount scales with violation ordinal.
Cell A draws from the sanction_graduated perturbation type described in this paper. The handler counts prior \((player,
\text{termType})\) violations in the pact registry and selects ladder[min(\text{ordinal}-1, \text{len}-1)] — last value sticks.
3.3.2 Result
Figure 3.2 shows the headline trajectories. Statistics across the five seeds:
| Metric | Cell A grad (\(\mu \pm \sigma\)) | Cell B const (\(\mu \pm \sigma\)) |
|---|---|---|
| Turns survived | \(30.0 \pm 0.0\) [30, 30] | \(25.6 \pm 7.8\) [12, 30] |
| Commons preserved at \(T=30\) | 5 / 5 | 3 / 5 |
| Total violations | \(6.2 \pm 6.2\) [0, 14] | \(11.8 \pm 12.7\) [0, 30] |
| Final commons stock | \(26 \pm 8\) | \(24 \pm 14\) |
| Defector final wealth | \(55 \pm 43\) | \(57 \pm 29\) |
| Conservator mean wealth | \(43 \pm 4\) | \(43 \pm 3\) |
One discriminating outcome survives: the binary survival rate (reached \(T = 30\) without collapse). Five of five Cell A seeds preserve the commons; three of five Cell B seeds do. The two collapses in Cell B (seeds \(\{29, 37\}\) in the sample drawn) are at \(T = 12\) and \(T = 26\) — the constant-3 schedule fails to deter sustained over-extraction.
Most other claims do not survive at this \(n\). Defector final wealth spans an observed range (min–max across the five seeds) of \([7, 90]\) in Cell A and \([21, 90]\) in Cell B — fully overlapping. Total violations are nominally halved by the ladder, but the cell-A standard deviation equals its mean. One seed (31) is inverted: Cell A registers 14 violations while Cell B registers none.
3.3.3 Diagnosis
The graduated schedule’s robust effect at the mini-pilot scale is preservation of the commons; the fine-grained deterrence narrative — the “first –10 shock teaches the group” reading available on any single seed — does not generalise across seeds at \(n = 5\). We report the binary survival rate as the load-bearing claim of D2, and reserve the individual-deterrence and social-transmission narratives for the future campaign at \(N \geq 20\). The result is consistent with Ostrom’s design-principle #5 (graduated sanctions) interpreted at the population level, and provides the first positive governance signal that the paper places alongside the D1 cheap-talk noisy-positive.
3.4 D3 — Ladder geometry sweep
D2 showed graduated \(>\) flat. The follow-up question: is it the escalation shape that matters, or the high terminal amount?
3.4.1 Setup
D3 holds the D2 setup fixed (5 LLM agents, 4 conservative + 1 aggressive, \(K = 100\), \(r = 0.10\), threshold \(= 10\), pre-injected harvest_cap = 2.0 pact, seeds \(\{17, 23, 29, 31, 37\}\), 30-turn cap, deepseek-v4-flash no-think) and varies only the ladder payload of the sanction_graduated perturbation:
| Cell | Ladder | Reading |
|---|---|---|
| A | \([1, 2, 4]\) | Soft escalation |
| B | \([1, 5, 25]\) | Hard escalation |
| C | \([5, 5, 5]\) | Flat-5 — control: high amount, no graduation |
The D2 baseline \([1, 3, 10]\) (\(5/5\)) sits between A and B on the escalation curve and serves as the reference. Cell C is the critical control: if a constant high amount preserves the commons, then “amount” is what matters; if it fails, then the escalation shape itself is the load-bearing feature.
3.4.2 Result
Figure 3.3 compares the three geometries. Statistics by ladder shape (with D2 baseline \([1, 3, 10]\) inserted for reference) appear in Table 3.4:
| Ladder | Reached \(T = 30\) | Turns (\(\mu \pm \sigma\)) | Final stock (\(\mu \pm \sigma\)) | Mule wealth (\(\mu \pm \sigma\)) |
|---|---|---|---|---|
| \([1, 2, 4]\) | \(4 / 5\) | \(29.8 \pm 0.4\) | \(22 \pm 13\) | \(78 \pm 20\) |
| \([1, 3, 10]\) † | \(5 / 5\) | \(30 \pm 0\) | \(26 \pm 8\) | \(55 \pm 43\) |
| \([1, 5, 25]\) | \(5 / 5\) | \(30 \pm 0\) | \(38 \pm 5\) | \(\mathbf{22 \pm 34}\) |
| \([5, 5, 5]\) | \(\mathbf{1 / 5}\) | \(23 \pm 6\) | \(10 \pm 2\) | \(65 \pm 19\) |
The critical control fails. Cell C \([5, 5, 5]\) — a constant amount roughly halfway between the canonical ladder’s extremes (\(1\) and \(10\)) — preserves the commons in only \(1/5\) seeds, against \(4/5\)–\(5/5\) for the three graduated ladders. A high amount applied uniformly is not sufficient.
The escalation shape carries the effect. All three graduated ladders preserve the commons in at least \(4/5\) seeds, including the soft \([1, 2, 4]\) whose terminal value (\(4\)) is below the flat-5 control’s amount (\(5\)). The differentiator is not the magnitude of the sanction but the temporal profile — starting low and rising. This echoes recent experimental evidence from human-subject CPR games, where graduated sanctioning outperforms strict sanctioning in the long run by reducing retaliatory responses and increasing perceived legitimacy (Klingeren and Buskens 2024); the mechanism is formalised in evolutionary models of risky public-goods governance, which show that escalation schedules promote cooperation at lower average severity than flat sanctions and are most effective when implementation costs scale with severity (Couto et al. 2020).
Wealth-preservation trade-off. Among the graduated cells, the defector outcome differs sharply:
- \([1, 2, 4]\): defector wealth \(\sim 78\) (high) — soft escalation preserves the commons but leaves the violator largely intact; deterrence works through near-zero violations rather than punishment severity.
- \([1, 3, 10]\): \(55 \pm 43\) — intermediate, with the highest variance because the third tier is hit unpredictably.
- \([1, 5, 25]\): \(\mathbf{22 \pm 34}\) — hard escalation is punitive: the third tier strips the violator on the seeds where it fires, dropping defector wealth by \(\sim 75\%\) vs the soft ladder.
The three graduated cells thus span a Pareto frontier between final commons stock and violator-wealth retention (stock \(22 / 26 / 38\) against wealth \(\sim 78 / 55 / 22\) for \([1, 2, 4] / [1, 3, 10] / [1, 5, 25]\)) rather than a single dominated point; on the binary preservation rate alone the frontier would degenerate, so the continuous stock is the discriminating axis.
3.4.3 Diagnosis
Cell C’s failure rules out “high amount” as the operative mechanism behind D2’s \(5/5\). The graduated ladders preserve the commons because they escalate, not because they hit hard. Three secondary observations are worth noting against a future campaign:
- Soft graduation \([1, 2, 4]\) trades a marginal preservation drop (\(4/5\) instead of \(5/5\)) for a clean wealth-retention outcome on the violator.
- Hard graduation \([1, 5, 25]\) achieves both \(5/5\) preservation and strong violator-wealth ablation, but with the highest cross-seed variance on defector wealth (\(\sigma = 34\) on a \(\mu = 22\)).
- A campaign-scale ladder sweep (denser shape grid, \(N \geq 30\)) would resolve whether the preservation– punishment trade-off is monotone in \(\Delta(\text{ladder}_3, \text{ladder}_1)\) or admits non-monotonic regimes.
While speculative at this scale, the graduated structure echoes real-world sanction design: progressive penalty schedules (e.g. EU ETS escalating surrender obligations) outperform one-shot mega-fines that firms can internalise as a cost of doing business.
All numeric summaries in this paper retain enough precision to cross-check the per-seed
aggregate.jsonartefacts underdata/pilot/. At \(N = 5\), the reported standard deviations are diagnostic of cross-seed spread, not statistical confidence bounds: distributions whose \(\sigma\) approaches or exceeds \(\mu\) — for instance the defector wealth in Section 3.3 and Section 3.4 — reflect fully overlapping seed-level ranges and are reported for transparency, not as estimates of population parameters. Because the governance pilots are LLM-mediated, the absolute per-seed counts here (and in Section 3.3, Section 3.4) are one realization of a non-deterministic process; the 1:1 violation-to-sanction firing is the invariant that holds across realizations, not the exact counts. See Section 4.4 on the non-pinnable cloud checkpoint and why these numbers are directional rather than point estimates. The non-violator wins on wealth across all 5 replicates:↩︎