Reciprocity as the Foundational Substrate of Society: How Reciprocal Dynamics Scale into Social Systems

Abstract: Prevailing accounts in both multi-agent AI and the social sciences explain social structure through top-down abstractions-such as institutions, norms, or trust-yet lack simulateable models of how such structures emerge from individual behavior. Ethnographic and archaeological evidence suggests that reciprocity served as the foundational mechanism of early human societies, enabling economic circulation, social cohesion, and interpersonal obligation long before the rise of formal institutions. Modern financial systems such as credit and currency can likewise be viewed as scalable extensions of reciprocity, formalizing exchange across time and anonymity. Building on this insight, we argue that reciprocity is not merely a local or primitive exchange heuristic, but the scalable substrate from which large-scale social structures can emerge. We propose a three-stage framework to model this emergence: reciprocal dynamics at the individual level, norm stabilization through shared expectations, and the construction of durable institutional patterns. This approach offers a cognitively minimal, behaviorally grounded foundation for simulating how large-scale social systems can emerge from decentralized reciprocal interaction.