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The Calculus of Selfishness

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How does cooperation emerge among selfish individuals? When do people share resources, punish those they consider unfair, and engage in joint enterprises? These questions fascinate philosophers, biologists, and economists alike, for the "invisible hand" that should turn selfish efforts into public benefit is not always at work. "The Calculus of Selfishness" looks at social dilemmas where cooperative motivations are subverted and self-interest becomes self-defeating. Karl Sigmund, a pioneer in evolutionary game theory, uses simple and well-known game theory models to examine the foundations of collective action and the effects of reciprocity and reputation.

Focusing on some of the best-known social and economic experiments, including games such as the Prisoner's Dilemma, Trust, Ultimatum, Snowdrift, and Public Good, Sigmund explores the conditions leading to cooperative strategies. His approach is based on evolutionary game dynamics, applied to deterministic and probabilistic models of economic interactions.

Exploring basic strategic interactions among individuals guided by self-interest and caught in social traps, "The Calculus of Selfishness" analyzes to what extent one key facet of human nature--selfishness--can lead to cooperation.

184 pages, Paperback

First published December 24, 2009

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Karl Sigmund

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Profile Image for Jukka Aakula.
287 reviews26 followers
July 31, 2025
Reread the book or at least chapters 1 and most of the material in the chapters 2, 5, 6 and 7. This time I concentrated especially on the study of fairness (Ultimatum game), on Donation Game, and on Public Goods Game.

I made two Python simulations - one on the Ultimatum Game and a second one on the Public Goods Game with four strategies (1) cooperate, 2) cooperate and punish, 3) defect and 4) abstain). Both can be executed in Google Colab easily. I recommend the first one.

Got some exciting ideas actually - how to bridge the gap between Sigmund's model on Public Goods Game and the Group Competition models by Bowles and Gintis on Public Goods Game.

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Not an easy read. You should have good skills in Mathematics to understand this book. I hold a Master's Degree in Mathematics, which I earned in 1983. After reading "The Selfish Gene" in 1985, I began to study Game Theory extensively. But if you really want to understand the mathematics of cooperation and especially reciprocity, this goes quite deep in the subject. I used 6-7 weeks 2-3 hours a day to read this and go through everything with pen and paper.
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