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The Rational Illusion: How LLMs Outplayed Humans at Cooperation

A negotiation bot walks into a pricing dispute. That is not the start of a joke. It is the start of a procurement problem, a marketplace design problem, a customer-service escalation problem, and, sooner than executives would like to admit, a governance problem. Once AI systems begin making choices on behalf of organisations, their behaviour in social settings matters. Not just whether they answer correctly. Not just whether they sound polite. Whether they cooperate, defect, compromise, optimise, over-trust, or quietly behave like a very caffeinated economist. ...

November 7, 2025 · 16 min · Zelina