W.D. Hamilton's Inclusive Fitness Theory explains the conditions that favor the emergence and maintenance of social cooperation. Today we know that these include direct and indirect benefits an agent obtains by its actions, and through interactions with kin and with genetically unrelated individuals. That is, in addition to kin-selection, assortation or homophily, and social synergies drive the...

Traditionally, economic theory has by and large been a theory of markets or, more precisely, about market prices. However, there are at least two reasons why economic science should extend beyond price theory. First, markets do not function properly unless suitable contracts can be formulated and enforced. Hence, we need to understand the institutions that support markets. Second, considerable ...

Cooperation in the face of moral hazard is a critical factor in economic development. Existing research on institutional support for cooperation has primarily focused on the role of contract enforcement in limiting the incentives for cheating. In contrast, we focus on the need for a social safety net to permit extensive cooperation. Starting from a basic prisoner’s dilemma model, we introduce u...

Human cooperation is enigmatic, as organisms are expected, by evolutionary and economic theory, to act principally in their own interests. However, cooperation requires individuals to sacrifice resources for each other's benefit. We conducted a series of novel experiments in a foraging society where social institutions make the study of social image and punishment particularly salient. Particip...

The units that are subject to selection pressure in evolutionary biology are 'strategies', which are conditional actions ('Do P if X occurs, otherwise do Q'). In contrast, the units in economics select strategies from available menus so as to further their projects and purposes. As economic agents do not live in isolation, each agent's optimum choice, in general, depends on the choices made by ...