Evolution of cooperation and altruistic punishment when retaliation is possible

Altruistic punishment is suggested to explain observed high levels of cooperation among non-kin related humans. However, laboratory experiments as well as ethnographic evidence suggest that people might retaliate if being punished, and that this reduces the level of cooperation. Building on existing models on the evolution of cooperation and altruistic punishment, we explore the consequences of the option of retaliation. We find that cooperation and altruistic punishment does not evolve with larger population levels if the option of retaliation is included.