Herbert Gintis
The Wisdom of CrowdsHerbert Gintis is an economist whose work with Samuel Bowles gives the book a framework for understanding cooperation as more than a calculation of immediate self-interest. Their account of strong reciprocity links people’s willingness to punish perceived unfairness with outcomes that benefit a group, while cross-cultural experiments associate greater market integration with more prosocial behavior.
Strong Reciprocity and the Common Good
The book introduces Gintis alongside Bowles in its discussion of the indignation over Richard Grasso’s retirement package. The response is presented as an example of strong reciprocity: people may punish behavior they consider unfair, or reward good behavior, even when they receive no material benefit themselves. Such conduct is not necessarily altruistic; people act from their own sense of what constitutes a just exchange. Yet the collective effect can still serve the common good.
The argument turns on a distinction between individual motive and group consequence. Rejecting an unfair offer or demanding accountability need not spring from love of humanity to benefit others. The book connects this pattern to the ultimatum game, where offers are usually equitable, and to the prospect that the New York Stock Exchange would scrutinize a chief executive’s actual worth more carefully when considering future hires. Individually costly or seemingly irrational punishment can therefore produce a collectively rational outcome.
Cooperation Across Cultures
The book also presents a study supervised by Bowles, with Gintis among the economists associated with the research program. In the late 1990s, twelve field researchers—eleven anthropologists and one economist—visited fifteen small-scale societies, including foraging communities, slash-and-burn cultivators, nomadic herders, and small agricultural societies. They asked participants to play the ultimatum game, the public-goods game, and the dictator game. These experiments made it possible to compare narrowly self-protective choices with actions that allow mutual benefit or express concern about fairness.
Every society showed significant departures from a purely rational strategy, but the departures varied across cultures. The study’s striking result was that societies more integrated with markets displayed greater prosociality: their participants made higher offers in the dictator and ultimatum games, cooperated more in the public-goods game, and showed strong reciprocity when given the opportunity. The book’s conclusion is measured: markets may not teach people to trust, but they can make trust easier to practice.
Cooperation as a Designed Problem
Gintis’s work appears within a broader argument about how rules shape collective outcomes. In a classroom experiment with two urns—one containing twice as many light as dark marbles, the other twice as many dark as light—participants used private draws and the guesses of earlier participants to identify which urn was in use. When paid for individual correctness, students often followed the guesses ahead of them, allowing information cascades to form. When payment instead depended on the group’s majority being correct, students attended more to their private information, and the group became more accurate. The example reinforces a concern shared by the book’s discussions of cooperation and reciprocity: collective intelligence depends not only on people’s capacities, but also on incentives that make useful contributions worthwhile.
That concern is also visible in the public-goods game described in the book. Four players begin with twenty tokens each and play four rounds. A contribution costs the contributor one token but gives 0.4 tokens to each of the four players, so each contribution benefits the group by 1.6 tokens overall. If all contribute, each player ends with thirty-two tokens; if nobody contributes, each keeps twenty. Yet an individual can gain by withholding a contribution and free-riding on others. Participants initially contribute about half their tokens on average, but contributions decline as players observe free-riding; by the final round, 70 to 80 percent are free-riding, leaving the group poorer than it could have been. Alongside the cross-cultural findings associated with Gintis and Bowles, this experiment shows why cooperation is not guaranteed by shared advantage alone: the rules and expectations surrounding contribution and punishment matter.