  We explore the coupled dynamics of the internal states of a set of
interacting elements and the network of interactions among them. Interactions
are modeled by a spatial game and the network of interaction links evolves
adapting to the outcome of the game. As an example we consider a model of
cooperation, where the adaptation is shown to facilitate the formation of a
hierarchical interaction network that sustains a highly cooperative stationary
state. The resulting network has the characteristics of a small world network
when a mechanism of local neighbor selection is introduced in the adaptive
network dynamics. The highly connected nodes in the hierarchical structure of
the network play a leading role in the stability of the network. Perturbations
acting on the state of these special nodes trigger global avalanches leading to
complete network reorganization.
