  Insights from the Complex Systems literature are employed to develop a
computational model of truly endogenous strategic network formation. Artificial
Adaptive Agents, implemented as Finite State Automata (FSA), play a modified
two-player IPD game with an option to further develop the interaction space as
part of their strategy. Several insights result from this minor modification:
first, I find that network formation is a necessary condition for cooperation
to be sustainable but that both the frequency of interaction and the degree to
which edge formation impacts agent mixing are both necessary conditions for
cooperative networks. Second, within the FSA-modified IPD frame-work, a rich
ecology of agents and network topologies is observed and described. Third, the
system dynamics are investigated and reveal that initially simple dynamics with
small interaction length between agents gives way to complex, a-periodic
dynamics with self-organized critical properties when interaction lengths are
increased by a single step.
