Indirect reciprocity

Indirect reciprocity is cooperation in which helping one individual affects the help received from a different individual, often through reputation. For example, individual A helps B; C observes the act and later helps A. B need never repay A. In direct reciprocity, by contrast, the same pair exchanges help over repeated encounters.

Martin A. Nowak and Karl Sigmund's 1998 model assigned individuals an image score reflecting earlier helping. Potential donors used that information when deciding whom to help, and successful strategies became more frequent. In the model, let $c$ be the donor's cost, $b$ the recipient's benefit, and $q$ the probability of knowing a recipient's reputation. An evolutionarily stable strategy based on helping required $q>c/b$. With $c=1$ and $b=4$, the threshold is $q>0.25$; merely observing that help is beneficial does not meet this information requirement.^[ref]

The condition belongs to this reputation model. It is not a universal numerical threshold for every system described as indirect reciprocity.