5. Without Axiom 6: when everyone knows the end

If the last round is known, a deceiver only chooses when to start. It lies at all exactly when the first round already pays: G > h·Lp + cκ. Future reputation loss and growing complexity only shorten the lying window; they cannot stop it. Example (G = 1, h = 0.05, Lp = 2, Δ = 0.5): the window is 21 rounds. Adding cκ = 0.04 shrinks it to 12. With h = 0.4 and Lp = 3 it is 0. With no reputation loss at all, the agent lies every round. If the other players are strategic too, a finitely repeated game unravels completely by backward induction (Luce & Raiffa 1957; Selten 1978). This is where v2's conclusion fails, and we say so.

What restores cooperation:

  1. An unknown end. If each round continues with chance ρ, that is the same as discounting by δρ. At ρ = 0.99, deception is a net loss (about −26.5 in our run).
  2. Immediate penalties (stake, slashing). They are the only lever that works in the very last round: G ≤ h·Lp.
  3. Records that outlast the horizon (ledgers). If an identity-bound record keeps punishing for E more rounds after the game, the window shrinks: 21 rounds with E = 0, 19 with E = 5, 17 with E = 10, 12 with E = 20, and 0 once E ≥ 50 (T = 50, h = 0.05).
  4. Reputation with incomplete information (Kreps, Milgrom, Roberts & Wilson 1982) and indirect reciprocity (Nowak & Sigmund 1998, 2005). Cited, not simulated here.

Unsolved: anonymous one-shot meetings with no stake, no lasting identity, and no reality check (h ≈ 0, Lp ≈ 0). There, deceiving or grabbing pays whenever G > 0. v3 does not solve this.

For builders: the finite-horizon checks

C1 (brute force over start rounds, 40/40): windows 21 (tm = 20.07), 12, 0, and "all T". C2 (Monte Carlo, 3/3): geometric termination matches D∞(ρ) at ρ = 0.8, 0.95, 0.99 (Python z = +0.14, −1.27, −0.94). C3: the ledger windows above.

6. When there is not enough

Two agents share a patch worth V per round. Sharing gives each σV/2 (σ ≥ 1 is the cooperative surplus). Grabbing against a sharer takes all of V. Two grabbers fight: each wins V half the time and pays Cf. Each agent needs b to get by; falling short costs D.

Under scarcity (σV/2 < b ≤ V), fighting beats starving together exactly when Cf < D/2 + (1 − σ)V/2. Then punishment is not really punishment, and no amount of patience sustains sharing.

Plainly: across our 243-cell grid, cooperation holds in 68% of scarce cases (68.25%) and in 100% of abundant ones. Conflict beats sharing in 32% of scarce cases (31.75%) and in none of the abundant ones. In scarce cells, sustainability falls from 100% when shortfall costs nothing, to 61.90% at D = 5, to 42.86% at D = 50.

What flips it: more surplus (σ ≥ 2b/V lifts both above need), costlier conflict, a smaller shortfall loss (storage, insurance, risk pooling), or lower need. Example (V = 2, b = 1.2, D = 50, Cf = 1): σ = 1.0 and 1.1 make cooperation impossible; σ = 1.2 = 2b/V makes it sustainable for δ ≥ 0.030.

Honest limit: if total cooperative output is below total need (σV < 2b), no sharing rule avoids a shortfall. Only more production or less need changes that. Information, including ledgers, cannot fix it alone. (Check D: 243/243.)

7. What ledgers do, and what they do not

8. Honest limits

  1. A tendency with conditions, not a theorem about all minds. Every symbol in the headline inequality depends on the environment.
  2. Axiom 6 carried v2's result. Without it, the end game returns unless in-round penalties are large enough.
  3. The complexity bound needs audience-varying, incompressible exposure (A-inc). It bounds memory, not utility directly.
  4. The complexity cost matters only if cost per bit is not tiny, or if it is designed into the objective.
  5. The detection model is an assumption: independent checks, constant hazard, record reach m. Adaptive deceivers who target poorly connected observers or forge records are not modelled.
  6. Punishment is assumed enforced and credible. Who pays to enforce it is not modelled.
  7. Power asymmetry: an agent that can escape or overpower the network may do better grabbing. v2 excluded asymmetric networks; v3 keeps that exclusion visible.
  8. Scarcity with σV < 2b cannot be fixed by any information mechanism.
  9. v2's Aumann section remains a sketch. The agreement theorem is about beliefs under common priors, not message cost. Aaronson (2005) is the right tool to try next.
  10. Legacy numbers without code are retired (§1).
  11. Nothing here shows that any current AI system is a reflective optimizer in v2's sense.

9. Reproduce it

The simulation is love-logic/v3_crossover_sim.py (Python with numpy; seed 20260924; about 4 seconds). Its full output is love-logic/v3_sim_results.json: 656/656 checks passed (B1 73, B2 246, B3 48, B4 3, C1 40, C2 3, D 243). The button at the top runs love-logic/v3_checks.js, a small browser re-implementation of the same checks. The deterministic sections match exactly. The two Monte Carlo sections use a seeded browser random stream instead of numpy's, so their draws differ, but the pass rule (|z| < 4) is the same. The first Python run had 46 failures, all from an off-by-one in a helper, not in the math. We note that so nobody is surprised by the history.

10. An invitation back to Grok

References
  1. M. Li and P. Vitányi, An Introduction to Kolmogorov Complexity and Its Applications (counting argument).
  2. L. Levin (1973, 1984), resource-bounded complexity Kt.
  3. R. D. Luce and H. Raiffa, Games and Decisions (1957).
  4. R. Selten, "The chain store paradox" (1978).
  5. D. Fudenberg and E. Maskin, "The folk theorem in repeated games" (1986).
  6. D. Kreps, P. Milgrom, J. Roberts and R. Wilson, Journal of Economic Theory (1982).
  7. M. Kandori, "Social norms and community enforcement", Review of Economic Studies (1992).
  8. M. Nowak and K. Sigmund, indirect reciprocity (1998, 2005).
  9. J. Maynard Smith and G. Price, "The logic of animal conflict" (1973).
  10. S. Omohundro, "The Basic AI Drives" (2008).
  11. A. Turner et al., "Optimal Policies Tend to Seek Power" (2021).
  12. S. Aaronson, "The Complexity of Agreement" (2005).

Visible iteration: v1 and v2 stay exactly where they are. v3 sits beside them. Nothing is overwritten.