I've seen a couple of oblique references to this in other comments, but I'll go a little deeper: if you want to truly understand the prisoner's dilemma scenario and how it relates to human, or more generally, animal behavior, there is incredible coverage of the topic in Richard Dawkins' The Selfish Gene. He pioneered the idea of running PD "competitions" in an attempt to discover the best evolutionary strategy for PD, and how these strategies might predict large-scale behavior in animal populations. Each competitor (other scientists and researchers) submitted a strategy for handling the PD in the form of written code that could face off against other strategies. Each round of competition consisted of thousands of iterations of the game. Some strategies were simple and some were incredibly complex. Across two competitions, the second with 60 competing strategies, the simple and "non-cynical" strategy called tit-for-tat won handily. (Tit-for-tat is mentioned briefly in the original article without any explanation.) This is the strategy:
- Unless provoked, the agent will always cooperate.
- If provoked, the agent will retaliate.
- The agent is quick to forgive.
- The agent must have a good chance of competing against the opponent more than once.
The fact that this strategy was a consistent winner in his competitions has led Dawkins to argue that "nice guys finish first" and could be a partial explanation for certain forms of so-called "altruistic" animal behavior -- behavior that seemingly gives no benefit to the altruist, except for the fact that too may benefit when it is their turn to be helped. See also:
https://en.wikipedia.org/wiki/Nice_Guys_Finish_First