It is often the case that individuals in a social group can perform certain
tasks (such as hunting, for example) more efficiently if they collaborate
with other individuals than if they act alone. In such situations one is ne
cessarily faced with the problem of how the resource obtained as the result
of such a collaboration should be divided among the collaborating individu
als. If one of the individuals in the collaboration is in a position (throu
gh its dominance rank, for example) to impose a particular division of the
resource on the other members of the collaboration then we show that an evo
lutionary dilemma arises which prevents such collaborations being evolution
arily stable. This dilemma, which is closely related to the well-known Ulti
matum Game, results from the fact that in such situations natural selection
favours individuals who, if dominant, offer smaller and smaller shares of
the resource to the others and, if subdominant, will accept lower and lower
offers. We also show, however, that this dilemma is naturally resolved in
a spatially structured population with selection favouring the evolution of
a fair division of the resource and consequently ensuring the evolutionary
stability of collaborations of this type.