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By means of extensive computer simulations, the authors consider theentangled coevolution of actions and social structure in a new version of aspatial Prisoner's Dilemma model that naturally gives way to a process ofsocial differentiation. Diverse social roles emerge from the dynamics of thesystem: leaders are individuals getting a large payoff who are imitated by aconsiderable fraction of the population, conformists are unsatisfiedcooperative agents that keep cooperating, and exploiters are defectors with apayoff larger than the average one obtained by cooperators. The dynamicsgenerate a social network that can have the topology of a small world network.The network has a strong hierarchical structure in which the leaders play anessential role in sustaining a highly cooperative stable regime. Butdisruptions affecting leaders produce social crises described as dynamicalcascades that propagate through the network.

Cooperation and the Emergence of Role Differentiation in the Dynamics of Social Networks