Re: Nice little article introducing neuro-economics
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The human reaction, though, is exactly what we expect, because there is a selective advantage to fairness, because in the real world (the economic world)these "games" are almost never single. Almost all economic interactions are "iterated"; hence there is a selective advantage to holding out for "fairness", even if the individual doesn't consciously realize it. This is NOT in conflict with any economic analysis. Essentially, what I'm saying is that the "sense of righteous indignation at unfairness" acts to lower the individual's time preference.
This: "Our ancestors were better at surviving if they were bloody-minded." is particularly stupid. The article is making the point that it is precisely the fair, and those that hold out for fairness that are better at surviving, not the "bloody-minded."
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This is true, but note that fairness is not useful in the modern (capitalist) world.
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What color is the sky in Crazy World?
What happens to economic exchangers who habitually do not act fairly to the other party to the exchange?
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