Many economists have forgotten (or never understood) that their central organizing principle,
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smallest quantity of labour and physical self-denial,” it’s doubtful he expected his “arbitrary definition” to delimit economic thought for centuries. Recall Rousseau’s words: “If I had had to choose my place of birth, I would have chosen a state in which everyone knew everyone else, so that neither the obscure tactics of vice nor the modesty of virtue could have escaped public scrutiny and judgment.” Those who proclaim that greed is simply part of human nature too often leave context unmentioned. Yes, greed is part of human nature. But so is shame. And so is generosity (and not just toward genetic relatives). When economists base their models on their fantasies of an “economic man” motivated only by self-interest, they forget community—the all-important web of meaning we spin around each other—the inescapable context within which anything truly
One of the most cited thought experiments in game theory and economics is called The Prisoner’s Dilemma. It presents such an elegant and simple model of reciprocity, some scientists refer to it as “the
In the classic form of the game, participants almost always betray one another, as each sees the benefit of quick betrayal: talk first, and walk away free. But take that theoretical conclusion to a prison anywhere in the world and ask what happens to “rats.” Theory finally caught up to reality when scientists decided to let players gain experience with the game and see whether their behavior changed over time. As Robert Axelrod explains in
The classic interpretation of the experiment took another blow when psychologist Gregory S. Berns and his colleagues decided to wire female players up to an MRI machine. Berns et al. were expecting to find that subjects would react most strongly to being cheated—when one tried to cooperate and the other “snitched.” But that’s not what they found. “The results really surprised us,” Berns told Natalie Angier, of
Analyzing the brain scans, Berns and his team found that when the women cooperated, two parts of the brain, both responsive to dopamine, were activated: the anteroventral striatum and the orbitofrontal cortex. Both regions are involved in impulse control, compulsive behavior, and reward processing. Though surprised by what his team found, Berns found comfort in it. “It’s reassuring,” he said. “In some ways, it says that we’re wired to cooperate with each other.”
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