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Moral Sentiments and Material Interests presents an innovative synthesis of research in different disciplines to argue that cooperation stems not from the stereotypical selfish agent acting out of disguised self-interest but from the presence of "strong reciprocators" in a social group.
Presenting an overview of research in economics, anthropology, evolutionary and human biology, social psychology, and sociology, the book deals with both the theoretical foundations and the policy implications of this explanation for cooperation. Chapter authors in the remaining parts of the book discuss the behavioral ecology of cooperation in humans and nonhuman primates, modeling and testing strong reciprocity in economic scenarios, and reciprocity and social policy. The evidence for strong reciprocity in the book includes experiments using the famous Ultimatum Game (in which two players must agree on how to split a certain amount of money or they both get nothing).
- Sales Rank: #1268576 in Books
- Published on: 2006-08-11
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x .95" w x 6.00" l, 1.25 pounds
- Binding: Paperback
- 416 pages
Review
Amos Tversky's research on preferences and beliefs has had a shattering and yet highly constructive influence on the development of economics. The vague complaints of psychologists and dissident economists about the excessive rationality assumptions of standard economics, going back over a century, had little impact. It required the careful accumulation of evidence, the clear sense that Tversky did not misunderstand what economists were assuming, and above all his formulation of useful alternative hypotheses to change dissatisfaction into a revolutionary change in perspective.
(Kenneth J. Arrow, Professor of Economics Emeritus, Stanford University, Nobel Laureate in Economic Sciences (1972))"This book presents social science at its interdisciplinary best: an exhilarating mix of game theory, evolutionary biology, experimental economics, cultural anthropology, primatology, and policy analysis. It will change our views of how biology and culture together determine social behavior."
(Daniel Kahneman, Princeton University, Nobel Laureate in Economic Sciences)"This outstanding book provides an extraordinary set of insights into the nature and effects of cooperation. Not only does it demolish the view, widespread in the social sciences, that people are selfish; it goes beyond demolition to delineate the uses and limits of cooperation in human behavior. One of its many virtues is that it extends the theoretical debate directly into the realm of law and policy, showing how an understanding of cooperation bears on employment practices, street crime, environmental protection, welfare policy, and even the behavior of taxpayers."
(Cass R. Sunstein, Law School and Department of Political Science, University of Chicago)"This is the wave of the future in social science research: the dissolution of disciplinary boundaries, a unified conceptual framework, and rapid feedback between theoretical and empirical inquiry."
(David Sloan Wilson, Binghamton University, author of Darwin's Cathedral: Evolution, Religion, and the Nature of Society)This work synthesizes the elements of the burgeoning, transdiciplinary field of study on the evidence of cooperation in human behavior, economic and otherwise. The hypothesis of strong reciprocity -- of willingness to both punish departures from norms, even at a cost, and to contribute, even in the absence of direct gain -- is tested in the field and in experimental studies. The papers in this book, and the studies on which they are based, represent an important new direction for social research, one with important policy consequences.
(Kenneth J. Arrow, Professor of Economics Emeritus, Stanford University, Nobel Laureate in Economic Sciences (1972))Where once human economy was viewed abstractly, as a mere reflection of market forces, there is increasing interest in how it derives from natural human tendencies. We do not come into this world as rational profit-maximizers, but as bonded, group-living primates. This volume sets the stage for new economic thinking that takes this thoroughly social heritage into account. With its attention to moral implications, it is the perfect book for the post-Enron era.
(Frans de Waal, author of Our Inner Ape) About the Author
Ernst Fehr is Director of the Insitute for Empirical Research in Economics at the University of Zurich.
Herbert Gintis is Emeritus Professor of Economics at the University of Massachusetts and External Faculty at the Santa Fe Insitute.
Samuel Bowles is Research Professor and Director of the Behavioral Sciences Program at the Santa Fe Institute and Professor of Economics at the University of Siena.
Robert Boyd is Professor of Anthropology at University of California at Los Angeles.
Most helpful customer reviews
10 of 11 people found the following review helpful.
Free Rider Proof Morality
By Hagios
One of the central dilemmas of the human condition is getting large groups of unrelated strangers to cooperate with each other. Whenever you have a group of people working collectively towards a common goal there are always some people who pull their weight and others who are free riders. I'm sure anyone who has ever had a job knows all too many free riders! Garrett Hardin memorably dubbed this the tragedy of the commons. Hardin's example is of villagers who graze their cattle on a commonly owned field. Now, if they wanted to manage the common field for the long term then each villager should abide by a quota of perhaps ten cattle. But unfortunately each villager has an incentive to break this quota. One extra cow won't have much of an impact on the long term health but it will make them a lot of extra money. Thus all villagers end out grazing extra cattle and the common field becomes overgrazed. All the cattle end out weak and scrawny. Hardin used this as an example to refute Adam Smith's invisible hand - in this case the pursuit of self-interest makes everyone worse off. Progressive argue that the government should get involved to regulate the commons. The government can set a quota and then enforce it. Libertarians argue for private property. Divide the commons up into privately owned lots. Each owner has an incentive to take care of their own lot.
If all we had to worry about were grassy fields then I would side with the libertarians. But there are many cases where the common good cannot be divided up. Two of the most important types are (1) firms and (2) governments. A firm is like a common good. If everyone works hard then their jobs will be secure and they will get raises as the firm grows and expands its business. Free riders shirk on the job and/or steal from their employer. Too many free riders and the firm fails - just like any other commons. Governments are like firms but with less competition. Corrupt government bureaucrats are arguably much nastier than corrupt workers at private firms. The police, judges, politicians, and bureaucrats have more power that they can abuse. (For more on how firms can fall to free riders see _The Wisdom of Crowds_. For more on governments see _Beyond Politics_).
That takes us to the central dilemma of the human condition. How do you get unrelated strangers to cooperate? Libertarians argue that self-interest will accomplish this, but as we've already seen, self-interest leads to free riding. That doesn't work. Progressive correct point to the need for moral behavior, but that has a different problem. In a world with free riders acting altruistically just turns you into a sucker. You can't solve the free rider problem by acting even nicer to people who are free riding. What we need is a free rider proof form of morality. We need a morality built on personal responsibility. Herb Gintis and his collaborators in the book dub this strong reciprocity. There are two key principles. The first is that strong reciprocators are conditional cooperators. They are willing to trust other people in order to cooperate. The second is that they are altruistic punishers. They will punish free riders even at a personal cost to themselves.
Suppose you have a group of ten people with one free rider and one strong reciprocator. The free rider will normally come out ahead of the rest of the group - but not after you factor in the punishment of the free rider. Of course, the altruistic punishment is costly for the strong reciprocator so he will also be a little bit worse off than the rest of the group. The good news is that the cost of altruistic punishment declines with the number of free riders. Consider a society with many strong reciprocators and very few free riders. Then strong reciprocators will almost never encounter free riders and have to punish them. By contrast, a society with many free riders and few strong reciprocators has the opposite dynamic. It is very costly to be an altruistic punisher.
Another running theme in the book is the power of culture. In _Not by Genes Alone_ Richerson and Boyd (who contributes an essay here) roughly define culture as information capable of changing how people behave. Thus culture is the solution to the free rider problem. Strong reciprocators are not born, but made. Richerson and Boyd (who reject the simplistic memetics of Dawkins) point out that cultures evolve and face selection pressures. Cultures that produce happy and prosperous societies will spread and those which do not will be weeded out. The challenge to successful societies is to create a culture which turns free riders into strong reciprocators.
14 of 15 people found the following review helpful.
An eclectic collection of great essays
By JJ vd Weele
This book is just really great. The literature on fairness and reciprocity in social science is growing fast, and this book is ideal to give you a flavour of why this is such a good thing. It is diverse, with entries ranging from biological models that attempt to explain the evolution of reciprocity, through the implications of reciprocity for the way legal sanctions work, to the political philosophy of the dark side of clan mentality.
Most readers will probably not want to read everything, and even less people will agree with everything. One needs to remember that a lot of the stuff in this book is still controversial, including the existence of (strong) reciprocity, but this is what makes it so very interesting. And if only half of what's in this book is right, it is still revolutionary.
In 10 years, this book will be terribly outdated. But for now, it is the best thing you can get if you are interested in the interplay between evolution, reciprocity and social order, and the fundamental questions of social science that it entails.
0 of 2 people found the following review helpful.
... free market model with correctives of regulation is the best economic model
By E. J. Ludwig
The free market model with correctives of regulation is the best economic model. Federalism is the best givernmental model. The idea of built in human decency is stupid because it is refuted by everyday experience, by most theories in the field of psychology, and by the tenets of Judaism and Christianity. It is left wing whining and complaining about our models of life. Strictly bull from the commie elite. Jesus Christ is also, I might add, the only way to escape a bad judgment at the moment of death.
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