The cooperative dynamics of a microlaser consisting of two three-level
atoms interacting with a pump field and two quantized cavity modes fo
rming a radiative cascade are studied. Adiabatic elimination of one mo
de leads to a strong dynamical entanglement between the internal state
s of the atoms which allows us to study the effects of a cavity-mediat
ed dipole-dipole interaction. We show that the coherent dynamics of th
e two-atom system will preferentially couple symmetrical linear combin
ations of internal states. If this coupling dominates the dynamics, th
e two-atom system will behave like a single atom with correspondingly
larger dipole moment, that is a superradiant two-atom system. Even ver
y small spontaneous decay causes transitions from symmetrical to antis
ymmetrical states and conversely. The hopping between two subsets of t
he state space can give rise to intriguing phenomena such as bistabili
ty of the laser mode intensity. By a randomization of the two coupling
phases we recover the standard independent-atom laser theory.