Moral Sentiments and Material Interests EconomicLearningandSocialEvolution GeneralEditor KenBinmore,DirectoroftheEconomicLearningandSocial EvolutionCentre,UniversityCollegeLondon 1. EvolutionaryGamesandEquilibriumSelection,LarrySamuelson,1997 2. The Theory of Learning in Games, Drew Fudenberg and David K. Levine,1998 3. Game Theory and the Social Contract, Volume 2: Just Playing, Ken Binmore,1998 4. Social Dynamics, Steven N. Durlauf and H. Peyton Young, editors, 2001 5. Evolutionary Dynamics and Extensive Form Games, Ross Cressman, 2003 6. MoralSentimentsandMaterialInterests:TheFoundationsofCooperation in Economic Life, Herbert Gintis, Samuel Bowles, Robert Boyd, and ErnstFehr,editors,2005 Moral Sentiments and Material Interests The Foundations of Cooperation in Economic Life editedby HerbertGintis,Samuel Bowles,RobertBoyd,and ErnstFehr TheMITPress Cambridge,Massachusetts London,England (2005MassachusettsInstituteofTechnology Allrightsreserved.Nopart of thisbookmay bereproducedin anyformbyanyelec- tronicormechanicalmeans(includingphotocopying,recording,orinformationstorage andretrieval)withoutpermissioninwritingfromthepublisher. MIT Press books may be purchased at special quantity discounts for business or sales promotionaluse.Forinformation,[email protected] toSpecialSalesDepartment,TheMITPress,55HaywardStreet,Cambridge,MA02142. ThisbookwassetinPalatinoon3B2byAscoTypesetters,HongKong,andwasprinted andboundintheUnitedStatesofAmerica. LibraryofCongressCataloging-in-PublicationData Moralsentimentsandmaterialinterests:thefoundationsofcooperationineconomiclife /editedbyHerbertGintis...[etal.]. p. cm.—(Economiclearningandsocialevolution;6) Includesbibliographicalreferencesandindex. ISBN0-262-07252-1(alk.paper) 1.Cooperation. 2.Gametheory. 3.Economics—Sociologicalaspects. I.Gintis,Herbert. II.MITPressseriesoneconomiclearningandsocialevolution;v.6. HD2961.M657 2004 3300.0105193—dc22 2004055175 10 9 8 7 6 5 4 3 2 1 ToAdeleSimmonswho,asPresidentoftheJohnD.andCatherine T.MacArthurFoundation,hadthevisionandcouragetosupport unconventionaltransdisciplinaryresearchinthebehavioralsciences. Contents SeriesForeword ix Preface xi I Introduction 1 1 MoralSentimentsandMaterialInterests:Origins,Evidence,and Consequences 3 HerbertGintis,SamuelBowles,RobertBoyd,andErnstFehr II TheBehavioralEcologyofCooperation 41 2 TheEvolutionofCooperationinPrimateGroups 43 JoanB.Silk 3 TheNaturalHistoryofHumanFoodSharingandCooperation: AReviewandaNewMulti-IndividualApproachtothe NegotiationofNorms 75 HillardKaplanandMichaelGurven 4 CostlySignalingandCooperativeBehavior 115 EricA.SmithandRebeccaBliegeBird III ModelingandTestingStrongReciprocity 149 5 TheEconomicsofStrongReciprocity 151 ErnstFehrandUrsFischbacher viii Contents 6 ModelingStrongReciprocity 193 ArminFalkandUrsFischbacher 7 TheEvolutionofAltruisticPunishment 215 RobertBoyd,HerbertGintis,SamuelBowles,andPeterJ.Richerson 8 NormComplianceandStrongReciprocity 229 RajivSethiandE.Somanathan IV ReciprocityandSocialPolicy 251 9 PoliciesThatCrowdoutReciprocityandCollectiveAction 253 ElinorOstrom 10 ReciprocityandtheWelfareState 277 ChristinaM.Fong,SamuelBowles,andHerbertGintis 11 Fairness,Reciprocity,andWageRigidity 303 TrumanBewley 12 TheLogicofReciprocity:Trust,CollectiveAction,andLaw 339 DanM.Kahan 13 SocialCapital,MoralSentiments,andCommunityGovernance 379 SamuelBowlesandHerbertGintis Contributors 399 Index 401 Series Foreword The MIT Press series on Economic Learning and Social Evolution reflects the continuing interest in the dynamics of human interaction. This issue has provided a broad community of economists, psycholo- gists, biologists, anthropologists, mathematicians, philosophers, and otherswithsuchastrongsenseofcommonpurposethattraditionalin- terdisciplinary boundaries have melted away. We reject the outmoded notion that what happens away from equilibrium can safely be ignored, but think it no longer adequate to speak in vague terms of bounded rationality and spontaneous order. We believe the time has cometoputsomebeefonthetable. Thebooksintheseriessofarare: 0 Evolutionary Games and Equilibrium Selection, by Larry Samuelson (1997). Traditional economic models have only one equilibrium and therefore fail to come to grips with social norms whose function is to select an equilibrium when there are multiple alternatives. This book studieshowsuchnormsmayevolve. 0 The Theory of Learning in Games, by Drew Fudenberg and David Levine (1998). John Von Neumann introduced ‘‘fictitious play’’ as a way of finding equilibria in zero-sum games. In this book, the idea is reinterpretedasalearningprocedureanddevelopedforuseingeneral games. 0 Just Playing, by Ken Binmore (1998). This book applies evolutionary gametheorytomoralphilosophy.Howandwhy dowemakefairness judgments? 0 Social Dynamics, edited by Steve Durlauf and Peyton Young (2001). The essays in this collection provide an overview of the field of social dynamics, in which some of the creators of the field discuss a variety