Cooperation between individuals requires the ability to infer each other's
mental states to form shared expectations over mutual gains and make cooper
ative choices that realize these gains. From evidence that the ability for
mental state attribution involves the use of prefrontal cortex, we hypothes
ize that this area is involved in integrating theory-of-mind processing wit
h cooperative actions. We report data from a functional MRI experiment desi
gned to test this hypothesis. Subjects in a scanner played standard two-per
son "trust and reciprocity" games with both human and computer counterparts
for cash rewards. Behavioral data shows that seven subjects consistently a
ttempted cooperation with their human counterpart. Within this group prefro
ntal regions are more active when subjects are playing a human than when th
ey are playing a computer following a fixed (and known) probabilistic strat
egy. Within the group of five noncooperators, there are no significant diff
erences in prefrontal activation between computer and human conditions.