Do LLMs Take Care of Their Own? Similarity Signals Can Induce Cooperation

As LLM-based agents with user-instructed goals are becoming widely deployed, they increasingly encounter each other in strategic interactions, and face challenges of finding mutually beneficial outcomes. Prior literature has argued that cooperation problems such as the Prisoner's Dilemma are resolvable in settings where the participating agents know they follow very similar decision making patterns, as for example in monocultural AI ecosystems. Following that line of work, this paper introduces the first framework for evaluating LLM decision making when similarity signals about other agents are provided. Among our findings, we establish that different LLM models vary drastically in how they navigate similarity signals, with some modern models showing consistent behavior across cooperation problems, payoff structures, and prompt framing. Perhaps surprisingly, our experiments also show that the dataset based on which the similarity signal is computed has small to no impact on induced cooperation, and that LLM models systematically self-identify as highly similar when asked to evaluate another model's chain-of-thought reasoning by themselves. Finally, we develop an LLM-behavioral-game-theoretic model that captures some of their reasoning rationale, and show that it can support cooperative outcomes in equilibrium under sufficiently high similarity scores.