Social Neuroeconomics:
Strong Reciprocity of ‘Hot Logic’ ?
Benoit Hardy-Vallée
Department of Philosophy
University of Toronto

Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
The received view :
Cooperation in behavioral
economics and neuroeconomics
‘Strong Reciprocity’
- inequity-aversion
- cooperation
- punishing cheaters
Alternative account:
‘Hot Logic’
- egoist cognition
- methodological
hedonism 2

Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Prisoner’s dilemma
Ultimatum Game
Trust Game
Game theory
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Prisoner’s dilemma
Ultimatum Game
Trust Game
The prisoner’s dilemma
Remain
Confess
silent
Confess
- 5, -5 - 10, 0
Remain
0, -10 - 2, -2
silent
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Prisoner’s dilemma
Ultimatum Game
Trust Game
the ‘warm glow’ of cooperation
Rilling, J., Gutman, D., Zeh,T., Pagnoni, G., Berns, G., & Kilts, C. (2002). A neural basis for social cooperation. Neuron, 35(2), 395-405.
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Prisoner’s dilemma
Ultimatum Game
Trust Game
Ultimatum
Game
Proposer
Responder
$9/$1 $8/$2.... ... ...$1/$9
Accept/reject
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Prisoner’s dilemma
Ultimatum Game
Trust Game
‘unfair’ offers trigger moral disgust and cognitive conflict
Sanfey, A. G., Rilling, J. K., Aronson, J. A., Nystrom, L. E., & Cohen, J. D. (2003).The neural basis of economic decision-making in the Ultimatum Game. Science, 300(5626), 1755-1758.
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Prisoner’s dilemma
Ultimatum Game
Trust Game
1.
Trust Game
x$
3x$
A. B.
x$ x 3=
(Y$) (Y$)
A.
2. B.
(Y-x $) (Y + 3x$)
 Z$
3. A. B.
(Y-x)+Z $) (Y + 3x) –Z $)
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Prisoner’s dilemma
Ultimatum Game
Trust Game
the ‘sweet taste’ of revenge:
Punishment is predicted by activity in the striatum
de Quervain, D. J., Fischbacher, U.,Treyer,V., Schellhammer, M., Schnyder, U., Buck, A., et al. (2004).The neural basis of altruistic punishment. Science, 305(5688), 1254-1258.
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Strong Reciprocity :
Interpreting Neuroeconomics
Fehr, E., Fischbacher, U., & Gachter, S. (2002). Strong reciprocity, human cooperation, and the enforcement of social norms. Human Nature, 13(1), 1-25.
Fehr, E., & Rockenbach, B. (2004). Human altruism: economic, neural, and evolutionary perspectives. Curr Opin Neurobiol, 14(6), 784-790.
Gintis, H. (2000). Strong Reciprocity and Human Sociality. Journal of Theoretical Biology, 206(2), 169-179.
Henrich, J., Boyd, R., Bowles, S., Camerer, C., E., F., & Gintis, H. (2004). Foundations of Human Sociality: Economic Experiments and Ethnographic
Evidence from Fifteen Small-Scale Societies: Oxford University Press.
Henrich, J., Boyd, R., Bowles, S., Camerer, C., Fehr, E., Gintis, H., et al. (2005). \"Economic man\" in cross-cultural perspective: behavioral experiments in 15
small-scale societies. Behav Brain Sci, 28(6), 795-815; discussion 815-755.
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Strong Reciprocity
willing to sacrifice resources in order to:
- reward fair behavior
- punish unfair behavior
even if there is no direct or future reward
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Strong vs Weak Reciprocity
Weak
genetic relatedness (kinship)
tit-for-tat (direct reciprocity)
good reputation (indirect reciprocity)
signs of power or wealth (coslty signaling).
Strong
Pro-social preferences and actions
Inequity-averison
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
cooperate
or
memory of
planning punish
past encounters
Others’utility
detector
inter-agents
utility categorization
comparator
Personal utility equal fair
detector
unequal unfair
Mechanisms of
Social Reciprocity 13

Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
cooperate
or
memory of
planning punish
past encounters
Others’utility
detector
inter-agents
utility categorization
comparator
Personal utility equal fair
detector
unequal unfair
Inequity aversion 14

Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
cooperate
memory of
planning
past encounters
Others’utility
detector
inter-agents
utility categorization
comparator
Personal utility equal fair
detector
unequal unfair
Prosocial action 15

“ “the neural foundations of strong reciprocity”
”
and a
“neural basis for strong reciprocity”
(Fehr & Rockenbach, 2004, p. 786/788).
Fehr, E., & Rockenbach, B. (2004). Human altruism: economic, neural, and evolutionary perspectives. Curr Opin Neurobiol, 14(6), 784-790.
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
‘Hot logic’ approach:
2 suggestions:
other interpretation of the data
other methodology
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
trust and cooperation signals
augment the chances of forming mutually profitable relationships
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
altruism can be instrumental
“
\"individuals attempt to outcompete each other in
terms of generosity. It emerges because altruism
enhances the status and reputation of the giver.
Status, in turn, yields benefits that would be otherwise
”
unattainable.\"
(Hardy & Van Vugt, 2006)
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Ultimatum Game
‘fair’ acceptables splits
profitable splits
splits
9/1, 8/2, 7/3... ...3/7, 2/8, 1/9
...5/5...
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
biological altruism (instrumental)
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Haley, K., & Fessler, D. (2005). Nobody’s watching? Subtle cues affect generosity in an anonymous economic game. Evolution and Human Behavior, 26(3), 245-256.
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Bateson, M., Nettle, D., & Roberts, G. (2006). Cues of being watched enhance cooperation in a real-world setting. Biology Letters, 12, 412-414.
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Hot Logic and dopaminergic systems
http://thebrain.mcgill.ca
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
methodological hedonism
using feelings to
anticipate feelings in order to
control our behavior toward
a maximization of positive feelings and
a minimization of negative ones
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
Conclusion
Strong Reciprocity: genuinly altruistic + innate
drive
--more like a mystery than an explanation
Hot Logic: methodogical hedonism
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Introduction Games Strong Reciprocity ‘Hot Logic’ Conclusion
“
This egoism is the instrument of our
preservation; it resembles the
instrument for the perpetuation of
the species; we need it, we cherish it,
”
it gives us pleasure, and we must
hide it.
- Voltaire, discussing Mandeville’s Fable of the Bees, In Dictionnaire Philosophique
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Thanks !
ben.hardy.vallee@utoronto.ca
Homepage
http://decisis.net
Natural Rationality Blog:
http://naturalrationality.blogspot.com
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