The coevolution of strategies and interactions is investigated with players located on a square lattice with interactions between first and second neighbors. The pair interactions are described by two-strategy (cooperation or defection) donation games with variable cost and benefit parameters for each player. During the evolutionary process, the players can adopt strategy or payoff parameters from one of their neighbors with a payoff-dependent probability. Numerical simulations indicate the formation of homogeneous defection or cooperation depending on the initial strategy and payoff distributions. The introduction of weak and rare mutations in the payoff adoption proves beneficial for the cooperative state, in which it increases the average payoff linearly in time. In contrast, the population cannot capitalize on the possibility of innovations in its defective state.

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• Evolutionary games
• Game theory models
• Spin lattice models