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Game theory was developed in the early 20th century by mathematicians like the French politician and mathematician who produced some of the earliest works on game theory in 1921.
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Game theory emerged as a method of analysis in the mid-20th century, influencing many fields from economics to evolutionary biology. Its development coincided with inventing of the atom bomb and rise of global corporations.
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By providing analytical tools for war, diplomacy and corporate strategy, game theory helped shape the modern world.
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The book uses the story of game theory to illustrate how we can meet life’s challenges. Reading it should train the mind like jogging does for the body.
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It discusses logical puzzles and paradoxes that can be enjoyable and therapeutic for the mind, in the tradition of ancient Greek philosophers like the Stoics who saw philosophy as a way of life.
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Solving unsolved paradoxes may lead to intellectual fame, though philosophy’s benefits are not just intellectual but also support equanimity of the mind.
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The author describes experiencing a period of deep depression and despair starting at age 17 while studying away from home in Delhi.
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The depression had a daily cycle, worsening throughout the day and easing at night. Over months, the window of calm shortened each day.
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He lost interest in everything and felt hopeless, despite attending classes and having friends who did not detect anything.
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After about a year and a half, the depression started to lift mysteriously. It was fully gone after another year or two.
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While depressed, he saw a psychiatrist who explained that Freud attributed too much psychological stress to latent sexual anxiety.
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The author does not know exactly what caused the depression to lift but credits using reason and contemplation as a strategy that helped sustain his good mental health afterward.
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He kept this dark period private for years out of shyness and fear of triggering a relapse by discussing it. It remains a curiosity to understand the causes.
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The author discusses how reasoning rationally inside one’s own head can be a powerful tool for happiness, especially when alternatives like antidepressants are not available. They emerged from a personal crisis believing in the value of honest, ruthless self-reasoning.
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Using examples like anger, they argue that reasoning can help overcome unproductive emotions and focus on assessing situations and potential responses, rather than feelings.
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While some have a natural capacity for analytical reasoning, others rely more on emotional robustness. The author’s mother exemplified using philosophical pragmatism over deductive logic.
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Intelligence alone does not guarantee good reasoning - even brilliant mathematicians may reason poorly on personal matters due to psychological barriers. Emotions often impair our reasoning abilities.
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Simple deductive reasoning is available to all and can help with life challenges like relationships, careers, and mental health issues. But we tend to reason less skillfully on emotional topics.
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Experiments showed people made logical errors in emotionally charged scenarios even when just assessing the structure of arguments, not their values. Reasoning faltered on emotive matters.
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“Positive” statements of logic and fact need not imply any normative positions and should be assessed solely based on truth, avoiding moralizing, according to philosophers like Hume and Russell.
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Bertrand Russell provides two pieces of advice for future generations: intellectual and moral.
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Intellectually, he advises to seek only facts and truth, without biasing judgments based on wishes or social effects. Consider facts alone.
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Morally, he advises love is wise while hatred is foolish. In an interconnecting world, we must learn tolerance.
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Russell’s daughter Katharine grew up rejecting his views and becoming devoutly Christian, illustrating taking his truth-seeking seriously.
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There is a distinction between truth and telling the truth. One should never compromise on seeking truth but may have to on telling it for moral reasons, to avoid needlessly hurting others.
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Public statements can hurt people, so there may be cases against stating some truths, though one should examine all propositions honestly internally for good decision-making.
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Allowing extra considerations to influence proposition validity leads to bad individual and policy decisions. Societies doom themselves when people judge theories based on political affiliations rather than merits.
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The analysis explores these ideas in more depth through discussions of thinkers like Hume, Machiavelli, Voltaire, and connections to game theory. Moral considerations are important alongside truth-seeking notions.
Here is a summary of the key details from the passage:
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Hume knew he was dying of cancer towards the end of his life, less than two months before his death on August 25.
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Despite being a radical thinker who was often attacked for rejecting conventional religion, Hume maintained remarkable equanimity.
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Adam Smith wrote to Hume’s publisher that Hume had told him he was “dying as fast as my enemies, if I have any, could wish, and as easily and cheerfully as my friends could desire.”
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This shows that even though Hume faced immense criticism and opposition for his ideas, he faced his impending death with courage, calmness and acceptance, providing an example through his character and attitude at the end of his life.
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His philosophical legacy and intellectual contributions continue to have value, but he also serves as a role model through how he conducted himself and maintained composure during a difficult time near the end of his life while knowing he was dying of cancer.
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Game theory originated in the works of French mathematicians in the 19th century trying to understand competition among producers. Cournot in 1838 looked at equilibrium concepts, which were later refined by Bertrand in an 1883 book review.
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The key idea is that in deciding strategies, players take into account what other players will do. Equilibrium occurs when no player wants to unilaterally change their strategy given what others are doing.
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Early works on games like chess also explored equilibrium concepts. Zermelo’s 1912 theorem showed that with perfect players in chess, the outcome would always be the same - either white always wins, a draw always occurs, or black always wins.
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In the 20th century, major mathematical developments advanced game theory concepts, including John Nash proving the existence of equilibrium in all finite games in the 1950s. Game theory provides insights into strategic decision-making where outcomes depend on the choices of multiple interactive and interdependent decision-makers.
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In the early 1950s, mathematician Albert Tucker was visiting Stanford’s psychology department and gave a seminar on a game invented by Merrill Flood and Melvin Dresher at RAND Corporation.
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To make the game more engaging for the psychologists, Tucker described it as a story called the Prisoner’s Dilemma.
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In the story, two prisoners are kept in separate cells after being arrested for a joint crime. The magistrate tells each prisoner they can confess or not confess in writing.
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If both confess, they each get 10 years. If neither confesses, they each get 2 years based on other evidence. If one confesses and the other does not, the confessor goes free and the other gets 20 years.
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The dilemma is how the prisoners will behave when faced with these options. Their outcomes depend not just on their own choices but the other prisoner’s choice as well.
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What happens in the Prisoner’s Dilemma comes as a surprise and is why the game became so famous. It demonstrates the tension between individual and collective rational decisions.
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The Prisoner’s Dilemma illustrates how rational self-interest at the individual level can lead to suboptimal outcomes collectively. If both prisoners confess (cooperate), they each get 10 years in jail. But rational self-interest means each prisoner confesses to minimize their own sentence, resulting in both getting 10 years instead of a better outcome of 2 years each if neither confessed.
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The Stag Hunt (also known as the Assurance Game) involves coordinating on a collective action (hunting the stag) that requires all players to cooperate, even though any individual player may be tempted to defect and hunt a hare instead for a smaller but guaranteed payoff. Key equilibria are all players cooperating (hunting stag) or all defecting (hunting hare).
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A Nash equilibrium occurs when no player can unilaterally improve their outcome by changing strategies, given what other players are doing. The Stag Hunt has multiple Nash equilibria like all cooperating or all defecting.
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Nash’s important theorem proved the existence of at least one Nash equilibrium in any game, resolving doubts about whether equilibria always existed, especially in large complex games. Equilibrium concepts are useful tools for analyzing real-world collective action problems.
So in summary, these games highlight tensions between individual and collective rationality, the importance of coordination, and Nash established the theoretical existence of equilibria as a solution concept. They provide insights into social cooperation challenges.
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The passage discusses zero-sum games and non-zero-sum games as metaphors for real-world conflicts and cooperation between nations.
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It gives a simple example of a zero-sum game with no Nash equilibrium to illustrate the concept.
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Real-world interactions are more complex, so it can be difficult to determine if real-world “games” have equilibria. Kakutani’s fixed-point theorem provided a mathematical solution to this problem.
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An intuitive example is given of a man climbing and descending a mountain, which demonstrates the concept of a fixed point without advanced math.
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The passage argues that game theory teaches us to manage emotions productively in life’s “grand game.” Anger and resentment about others’ actions are usually pointless, as others’ moves are outside our control.
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We should strategize our own actions rather than resenting others’, and avoid destructive emotions like anger that only hurt ourselves. This promotes ataraxia or peace of mind.
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Displaying anger can potentially influence others’ actions, but strictly speaking anger itself is never worthwhile - only the display of it in certain strategic situations. Emotion management is an important life lesson from game theory.
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Negative emotions like fear, anxiety, and shame have evolutionary value as they prompt survival behaviors, but often come with negative side effects.
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It is possible to train the mind to take helpful actions prompted by these emotions without actually experiencing the negative emotions themselves. This allows one to reap the benefits without the negatives.
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To do this, one needs to store triggering information as facts/data rather than emotions, and use it dispassionately for decision making. This requires mental training but is achievable.
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Experiencing the COVID pandemic increased anxiety worldwide due to risk, but we don’t feel anxious driving despite road risks being arguably greater. This is because we store risk data rationally rather than emotionally.
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Taking rational precautions and then living without fear, like drivers on the highway, can help battle anxieties. Change what you can, then live without worrying over risks you can’t change.
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Inferiority complexes often arise from flawed reasoning rather than deep psychological roots. Simple arithmetic shows many believe they are worse off than they truly are due to only seeing others’ “highlight reels” and not the full picture.
Here are the key points this passage makes:
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The passage uses a thought experiment about people rating each other’s attractiveness on a Florida beach to illustrate how perceptions of one’s social ranking can negatively impact self-esteem.
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It shows through game theory reasoning that the only Nash equilibrium is for only the top 12.5% most attractive people to actually go to the beach, creating a skewed perception that average attractiveness is higher than it is.
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This dynamic is amplified by social media, where people selectively share positive aspects of their lives and others make downward social comparisons.
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Research shows most people have fewer Facebook friends than their friends, but this is mathematically expected due to the structure of social networks.
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The passage aims to convince readers not to let perceived social rankings impact their self-esteem or mental well-being. It acknowledges appearances are multi-dimensional and true worth can’t be reduced to rankings.
So in summary, the passage uses analytical reasoning and research findings to argue that perceptions of social standing derived from things like rankings of attractiveness or friend counts do not reflect true worth and shouldn’t negatively impact self-esteem.
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The passage discusses skepticism about rankings, evaluations and certainty in various dimensions like math, literature, business, art skills. No agreed way to rank and compare different skills.
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Rankings are ultimately mental constructs. How one sees oneself is constructed in the mind. The world is constructed by one’s mind. It’s hard to prove others truly exist outside one’s mind.
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The writer lost belief in God in high school after reading Russell who challenged unquestioning acceptance. Found debates about mono/polytheism uninteresting - as long as God number is non-zero, belief seems wrong given state of world.
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God as all-powerful and all-merciful is inconsistent with tragedies/sorrows. A less powerful and less merciful creator could exist but wouldn’t be called God. Creator of universe possible but no need to worship such an entity. Writer keeps open but skeptical on existence of creator.
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In the end, little can be stated with certainty due to limitations of human perception and knowledge. Openness to unknowns is sign of modesty and intelligence versus overconfidence leading to mistakes.
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The author recounts a miraculous experience where they prayed and found their missing Green Card the next day, which they couldn’t logically explain. They remain skeptical but open-minded about such possibilities.
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They argue skepticism is valuable as it encourages questioning assumptions and can lead to major breakthroughs. Scientists make assumptions that become ingrained over time.
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Breakthroughs often occur when someone questions an unconscious assumption, as with geometry. Euclid assumed it was done on a 2D plane, though he didn’t state it. Others like Omar Khayyam realized this hidden assumption.
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Reconstructing non-Euclidean geometry required mathematicians, but the original insight came from individuals like Khayyam with a ability to question obvious assumptions.
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In general, skepticism nudges us to continually question what we learn and keep an open mind to different explanations. This can help deal with life’s challenges equanimity. But one must be careful not to take skepticism too far and apply its few lessons.
The key points are how skepticism encourages questioning inherent assumptions, even unconscious ones, which can lead to major advances, and how the author applies skeptical open-mindedness to their own anomalous experience losing and finding their Green Card.
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The passage discusses some hidden assumptions in fields like economics, geometry, and our perceptions of reality.
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In economics, models make assumptions like rational preferences that may not always hold true. Formalizing these assumptions draws attention to what is needed for theories like the invisible hand to work.
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Euclidean geometry does not apply accurately to the curved surface of the Earth. Overlooking this could have led to mistakes in air travel.
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There may be dimensions of reality we cannot perceive without the proper organs. Just as we cannot see infrared light, there could be an entire dimension around us that is invisible.
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Smallness is endless - what we consider elementary particles may have smaller structures. Life could exist at scales too small for us to observe, like entire civilizations inside atoms.
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Language and communication abilities are often taken for granted in economic models but are necessary for trade. Changes in communication norms could significantly impact society.
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Examining hidden assumptions can provide novel insights and solutions by making the implicit explicit in our theories of how the world works.
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The passage discusses the concept of paradoxes and argues that true paradoxes do not actually exist in the real world. Paradoxes arise from our inability to think clearly and reason accurately.
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It gives the example of Russell’s paradox from set theory to illustrate this point. Russell’s paradox stemmed from an unwitting assumption that there exists a “universal set” (a set containing all sets), which was later realized to be incorrect.
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The author then introduces the Traveler’s Dilemma, a game theoretical paradox where rational players should both choose the lowest number but in practice usually choose higher numbers.
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Various explanations have been proposed for the divergence between theory and experiment, such as people not being completely selfish or rationally flawless. However, the author argues the core paradox remains unresolved - that it could be rational to reject rationality.
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The possibility is raised that a layperson’s mind may have an advantage over experts in solving this due to fewer preconceptions. Primal philosophical problems underlying such paradoxes may be more visible to an “untrained” mind.
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The Traveler’s Dilemma also casts doubt on the common game theory assumption of “common knowledge” of rationality among players.
The article discusses whether politics has become too similar to football in some ways. It argues that in politics, as in football, supporting a party can become an end in itself rather than being based on the party’s actual policies or ideology. People develop strong emotional attachments to parties like sports teams, and want “their” party to win for its own sake.
Some key points made:
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Politicians are adept at creating new targets and games for people to aim for, shifting goalposts to influence outcomes. Moving up rankings can become a target in itself.
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Once targets are internalized, people will strive for them and be willing to pay costs, like supporting a party no matter what.
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This dynamic gives politicians and powerful groups opportunities to manipulate people and outcomes. It can be used for good or ill depending on the politicians’ actual goals.
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The phenomenon reflects how in games and life, people’s preferences and payoffs are not fixed but can evolve strategically as new targets emerge during play. This is not fully captured by rational choice theories.
So in summary, the article argues that electoral politics in some countries has taken on features of competitive sports, with emotional partisan attachments that can be exploited rather than policy-driven support.
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Niloy, one of the narrator’s close friends in college, was a member of the Communist Party and believed in its ideals of social justice. However, the narrator refused to join the party or revolution out of concerns about the practical path to achieving communism’s utopian goals.
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Niloy spent time in jail for his revolutionary activities, which damaged his health. He died prematurely in 2021, disappointed that the narrator did not join the movement.
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Discussions with Niloy in college led the narrator to adopt a view of determinism - that all events are caused by preceding events and factors outside of one’s control, like environment and genetics.
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The narrator argues that determinism does not preclude free will. While one’s choices may be predetermined, they still have choices that can influence outcomes. This allows for moral responsibility over some actions and outcomes.
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There are dilemmas in attributing moral responsibility to large groups like government leaders when addressing societal problems may require collective action that no individual can compel. The narrator examines scenarios where suffering occurs due to no individual having a viable path of action.
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Determinism has philosophical implications for how we lead our lives, think about moral responsibility, and relate to others.
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Determinism suggests that after a trillion years, the universe will be in the exact same state, repeating in an endless loop. This poetic view of an unchanging, repetitive universe has no implications for how we live.
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Ancient Greek Stoic philosophers like Chrysippus argued the universe has no beginning or end and operates in an endless, repetitive cycle.
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Determinism encourages viewing others’ behavior as caused by factors beyond their control, just as we understand tiger bites. This leads to rationality over anger.
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Punishment under determinism is not for revenge, but to change future behavior and create a better world.
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Only you can change yourself; regret over past actions is pointless since they cannot be changed, but the insights can guide better future behavior.
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Philosophy is a way of life practiced through daily activities, as with Socrates, not just an academic discipline confined to books and classrooms.
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Assuming each person is responsible for the feasible choices available to them, we can discuss conceptions of the good life and moral responsibility.
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Morality is needed in society even without a God who rewards/punishes, because humans have an innate sense of empathy, fairness and justice. We want to cooperate with others and reciprocate fair treatment.
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While self-interest drives behavior to some degree, it is not enough on its own to form complex social structures like markets. Empathy and fairness norms are required.
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Kafka and Havel illustrate how oppressive systems can arise from collective behavior through implicit social pressures, even if no single person intends harm. There is an “invisible hand” of both good (free markets) and evil (oppression).
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Game theory helps explain how individual self-interest at a group level can undermine long-term collective interests, like overusing common resources. Conventions are needed to restrain short-term behavior.
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Groups do not always have hidden agendas - more often, individual intentions do not translate directly into group outcomes due to complex dynamics. Moral attributions of groups require better understanding of these collective effects beyond individual agency.
In summary, it discusses the need for morality beyond individual self-interest, the “invisible hand” concept applied to both beneficial and oppressive group dynamics, and the challenges of attributing morality to collective behaviors and outcomes.
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The passage discusses the issue of assigning group moral responsibility or attributions. It notes how common it is to characterize political parties, corporations, nations, etc. collectively in moral terms.
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Group moral responsibility is philosophically contentious. Such attributions may be meaningless and potentially dangerous if used to whip up anger against groups.
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However, there may be consequentialist reasons to make such attributions even if not factually accurate, in order to influence behavior.
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The passage then discusses how humans have a tendency to attribute agency and responsibility whenever events occur. This leads to collective moralizing about groups.
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Even attributing responsibility to individuals is complex given determinism and constraints on choice. The problem is more acute for groups where outcomes depend on interactions.
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Games theory examples are used to illustrate how a society’s outcomes depend on collective behaviors and equilibria, not any group’s moral intentions. Good intentions do not guarantee good outcomes.
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History shows many examples where utopian projects with good intentions failed or caused harm, like some socialist experiments, due to not considering incentives and interactions.
So in summary, the passage questions the validity and potential dangers of group moral attributions, while acknowledging their strategic uses, and illustrates the complex challenges of linking intentions to outcomes for groups.
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The scenario describes a game-theoretic interaction between two players, Johnny Won and Jaya Tu, who must each choose between environmentally-friendly and harmful actions.
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If both players act selfishly to maximize their own payoffs, the equilibrium outcome is for both to choose the more harmful actions, resulting in a poor payoff for future generations.
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However, after Johnny meets Greta Thunberg and becomes committed to considering the impact on future generations, the game changes. Now Johnny tries to maximize the combined payoffs for himself and future generations.
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With one player now acting morally, the equilibrium switches to an outcome where the future generation’s payoff is even lower. Paradoxically, the moral intention does not translate to a moral outcome due to the strategic environment.
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This “Greta’s Dilemma” scenario illustrates that moral intentions alone are not enough - understanding the strategic context is also important to achieve outcomes that are moral in practice. Simply becoming virtuous may backfire by worsening outcomes for those one intends to help.
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The cognitive sciences recognize that the human mind consists of large networks of neurons, each unaware of its role. There is an effort to apply this perspective to social sciences and recognize large networks of humans behaving collectively in unintended ways.
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When studying such collective behaviors, it may be futile to morally evaluate individuals because they may lack conventional free will. However, ethics requires recognizing an obligation to help suffering others.
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Even if a good outcome is currently beyond reach, we must nurture the “moral intention” to achieve good. While this can backfire, it can also inspire novel solutions like taxes on selfish behavior.
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Groups behaving badly does not mean individuals desire that outcome. Leaders may be trapped in larger dynamics beyond their control, like in Havel’s post-totalitarian state.
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Greta’s Dilemma shows how individual moral behavior can backfire and produce immoral outcomes. The “Samaritan’s Curse” gives another example, showing even universal moral behavior fails to escape this paradox.
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This illustrates the need to align individual and group morality, just as laws and policies align individual and group rationality. It prompts rethinking popular discussions of moral responsibility for collective harms.
This section discusses how large organizations like nations and corporations can act as “guilt shelters” for individuals within them. It allows individuals to engage in harmful behaviors they otherwise would not because responsibility is diffuse.
One reason is the complex structure makes it hard to assign individual blame. Another is individuals feel less guilty because others would have done the same action. This allows organizations to negatively impact consumers, workers, and the environment without individuals feeling responsible.
Laws try to mitigate this effect, but the complex structure still provides moral cover. Not only may this evolve as a survival mechanism for large entities, some heads may deliberately design structures this way.
The section then discusses how game theory insights can shed light on oppression and revolution. A tyrant may strategize to quell rebellions by making individual protest too risky. Coordination through focal leaders and technology has enabled some successful uprisings by allowing mass protests. However, examples also show rebellions nearly succeeding but then being squashed through threat of reprisal. Overall, there are still open questions about fully understanding and modeling collective behaviors like revolutions.
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Sviatlana Tsikhanouskaya fled to exile in Lithuania and Poland after Belarus’ 2020 presidential election and tried to galvanize opposition to Alexander Lukashenko from abroad. Initially, there were large protests in Minsk, but these have since died down.
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This raises questions about why some uprisings succeed while others fail, and what methods dictators use intentionally or unintentionally to foil coordinated rebellions. It may be inherently difficult to predict rebellions.
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The author presents a “parable” using game theory to analyze how a dictator could theoretically stop a rebellion. By dividing citizens into identifiable groups and threatening to jail the first group to protest, followed by subsequent groups if needed, the dictator can create a situation of “common knowledge” where no one protests out of fear of arrest.
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Realistically, it is difficult for dictators to practically implement such a scheme of graduated arrests due to large populations. However, they can still partially spread knowledge of their strategies to discourage protest by raising the perceived probability of arrest without ensuring certainty.
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Rebellions may still succeed due to people with exceptionally strong moral commitments who cannot be dissuaded through threats, as well as difficulties for dictators in truly knowing people’s minds. Overall, both quelling dissent and enabling change are inherently complex problems.
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The author discusses how moral intention alone is not enough, and needs to be combined with scientific analysis to create hope of addressing problems.
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They use the tragedy in Seoul as an example of a collective outcome where no individual can be blamed, but steps still need to be taken to anticipate and prevent such issues.
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Looking to the future through things like constitutions and manifestos drafted from behind a “veil of ignorance” can help plan impartially for situations where one’s own identity is blurred.
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Two open analytical challenges are posed for game theory to address. One is to develop models where players’ payoffs depend on others’ payoffs to better capture empathy. The other is addressing how to “step outside” the concept of a single “game of life” to improve collective outcomes.
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In summary, the author argues moral intention plus scientific analysis is needed to create hope, and poses some open challenges for game theory to help enable better collective decision making and outcomes.
The passage discusses the need for collective action to create a better world amidst growing challenges like environmental issues, inequality, and conflict. While human moral intentions are valuable, they are not enough on their own and can backfire if not implemented properly.
Historically, impactful social movements were inspired and powered by words - written manifestos, speeches, debates that changed public opinion and drove reforms. The Communist Manifesto is cited as one of the most influential in galvanizing revolutions globally based on its morally resonant message of distributing resources according to ability and need.
However, the passage notes many revolutions did not create the just societies envisioned and instead transformed into oppressive regimes. This divergence between ideals and outcomes has been exploited by conservative groups resistant to change.
Overall, the key point is that while human reason and morality can guide the push for reform, actually implementing positive change requires careful consideration of systems and rules to avoid unintended consequences - merely relying on good intentions is not sufficient. Strategic and sustained collective action is needed to navigate challenges and realize a better world.
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The passage criticizes efforts to stall progressive initiatives to redistribute income and wealth by equating them with cronyism and tyranny in other countries. A fair and compassionate world is an admirable goal.
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Marx got the normative goal of equality right but the positive economics of how to achieve it wrong. Kafka recognized this in his novels.
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There will likely be economic turbulence ahead due to technological and societal changes, both natural and caused by human actions. This could be an opportunity to pursue a better path if we seek solutions rather than resignation.
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Past idealists and radicals ignored individual incentives in system design. Any system must recognize human self-interest and the profit motive. Extreme laissez-faire and an all-powerful state both lead to crony capitalism. Balance is needed.
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Current inequality is unacceptable and harmful. While some inequality spurs incentives, not inequality on the scale of billions of dollars versus $1.90 per day. Poverty perpetuates across generations.
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A more equitable world can be achieved without damaging incentives if private enterprise and market functions are supported, without excessive government wealth or interference. The government should redistribute wealth from rich to poor.
So in summary, it analyzes past failures to achieve equality, criticizes the status quo of extreme inequality, and argues a balanced approach respecting human nature could lead to greater equality without economic harm.
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The passage discusses the problems of extreme inequality and concentration of wealth and power. If the richest people control public opinion, politicians, and silence dissent, it will be impossible to enact reforms.
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It also talks about “aporophobia”, the disparagement of the poor, and how this form of discrimination receives less attention than other forms like racism or sexism.
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Digital technologies are exacerbating some of these issues, as digital platforms concentrate power and wealth in large corporations like Amazon, Uber, and Airbnb. Traditional economic and antitrust models are inadequate to address this.
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Simply breaking up large platforms may not work as their advantage lies in their size. Other options proposed include making the largest platforms non-profit organizations, or ensuring widespread shareholding of platform companies so profits are more dispersed.
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A universal basic income is presented as an attractive but imperfect solution that does not adequately address inequality. The “accordion tax” system is proposed as a better alternative, flattening income distribution while preserving work incentives and economic growth.
The accordion tax is a proposed tax system where everyone pays a tax based on the gap between their income and the mean (average) income in society. Those earning below the mean would receive a negative tax (subsidy) from the government.
The key aspects are:
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Everyone’s relative ranking in the income distribution remains the same. The highest earner is still highest, etc.
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A very high tax rate, even 99%, would not change rankings but greatly flatten the income distribution.
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It aims to reduce inequality while minimizing impacts on work incentives, as relative income is a main driver of motivation for most people.
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Implementing it globally would be challenging due to risk of capital flight, so coordinated action across major economies would be needed.
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It could be modified in practice, e.g. to raise more tax revenue than subsidies to fund other programs.
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A global constitution with minimum agreements on issues like human rights, term limits, tax coordination is discussed as a long-term goal, though very difficult due to political and economic obstacles. Grassroots movements may be needed to drive more equitable systemic change over generations.
The passage discusses moving beyond narrow national interests and identities towards a more global perspective of humanity. It argues that nationalism played an important historical role but can now have narrowing effects and be used to justify oppression. While some identities like family and community are natural, national identity risks becoming damaging if taken to an extreme of hyper-nationalism.
It notes research showing how in-group loyalty can conflict with genuine prosocial behavior and caring for outsider groups. Globalization requires nurturing our largest shared identity as inhabitants of Earth and cooperation across nations. The passage advocates expanding our concerns beyond individuals and nations to consider the world and future generations in policymaking. This will require radical, out-of-the-box thinking to address the challenges of globalization and technological change.
Overall, the key idea is that it is time to prioritize our shared human identity over national divisions and work towards greater equity, justice and moral behavior that cuts across borders to benefit all people. Nationalism served a purpose historically but now risks harm if taken to an extreme, so a more globally minded perspective is needed.
This passage discusses several key ideas:
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It introduces the closing chapter of the book, which examines the problems of rationality, morality, and strategy faced by humanity as the largest collective on Earth in the context of increasing globalization.
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It argues we must think of our common human interest in fairness, justice, survival, and sustainability, and consider the well-being of those on the fringes of society as well as future generations who will inherit the Earth.
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Technology is advancing rapidly in a globalized world, and while we can’t stop fundamental processes, we can utilize resources like empathy, kindness, and intelligence to design new interventions for a better world.
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We can no longer live isolated lives indifferent to injustices beyond our borders, as suffering elsewhere will impact us. We have a moral duty to fight suffering wherever it occurs.
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The chapter emphasizes the need for greater equity and justice urgently, before inequality further corrodes democracy and persuades the poor that wealth redistribution harms them. Over 650 million live in extreme poverty.
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Many current conflicts and authoritarian trends have roots in deep-rooted injustices and frustrations, so activism is needed to end injustices and create a better, more just world for all. We must think beyond narrow identities and consider global well-being.
In summary, the passage discusses the meaning and existence of “the game of life” at a global scale, arguing for a more compassionate, just and sustainable approach that considers all humanity’s shared interests.
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Cultural norms can help coordinate behavior and select a focal point, but some cultures may look to equity and fairness instead of norms.
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Our individual actions have little effect on collective outcomes, so societal success depends on developing codes of individual behavior enforced by taxes, regulations, social norms, etc.
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Experiments show people are naturally guided by efficiency considerations when deciding punishment, though curbing painful emotions while still taking empathetic action can be better.
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Without a minimum of trust and honesty, markets may break down according to some economists and philosophers. Akkerlof’s work also showed how trust between buyers and sellers is essential for markets.
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There can be group moral responsibility even if individuals are blameless. Holding individuals responsible can incentivize behavior change and bring about better outcomes.
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Choosing actions for the right moral reasons is important. One’s reasons for acting must align with what makes the action morally right.
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Moral responsibility can be conferred through interactive decision making even in deterministic settings, like games modeling social dilemmas.
The passage discusses conducting “oratory tests” using Greta’s Dilemma game to empirically test whether warning players about the effects of their actions on bystanders leads to more moral/cooperative behavior. It suggests not informing players initially, then revealing information and priming moral responsibility before rerunning the game.
Related ideas in game theory and morality are discussed from literature on coalition formation and backward induction. The widespread use of knowledge hierarchies in different domains is also noted.
Applying the dilemma to an infinitely large population would require common knowledge of all levels. The passage notes that real individuals are often other-regarding and benevolent, which could enable formalizing activism and constitutional design insights.
An “invisible hand” can take different forms beyond Adam Smith’s market version, like Kafka’s oppressive political form without an identifiable perpetrator. Norms restraining behavior are beginning to be incorporated into mainstream economic theory. Term limits for political leaders are argued to be necessary to prevent morphing into oppressive dictators. A tax system tailored to simultaneously reduce poverty and inequality is proposed and related to prioritarian and sufficientarian philosophy.
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The passage discusses various approaches to limiting the behavior of the state in a self-enforcing manner, such as through constitutional constraints as discussed by Weingast (1997).
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It notes that in reality, people often go beyond self-interest and behave cooperatively for the collective good, like managing common resources as seen in Baland and Platteau (1996). Experiments show people have “conditional cooperation”, willingness to sacrifice if others do the same (Rustagi, Engel and Kosfeld 2010).
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Communication and promises can influence cooperative behavior at a micro level, as controlled studies have shown (Charness and Dufwenberg 2006; Bahel, Ball and Sarangi 2022). It would be interesting to study if this could extend to public deliberation (Weithman 2005).
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Identities are complex with risks and hopes - people have multiple overlapping identities (Sen 2006). Nationalism must be balanced with a larger human identity as Tagore and Nehru envisioned. Studies show differences in attitudes towards in-groups and out-groups depending on individual pro-sociality (Niemi and Young 2013; Rahel, Fiedler and de Dreu 2020).
In summary, it discusses self-enforcing constitutional limits on states, reviews evidence of conditional cooperation beyond self-interest, and explores the role of communication, promises and identities in cooperative behavior.
Here is a summary of the provided references:
The references cover a wide range of topics related to collective action, group agency, social norms, economics, philosophy, and political science. Some of the key references discussed group agency and collective responsibility (List and Pettit, Chiao, Hess, Hakli et al., Copp). Others examined social norms and their economic influences (Lindbeck et al., Kleimt, Frank). Game theory and its applications to collective behavior were discussed in several references (Goeree and Holt, Eichberger and Kelsey, Genicot and Ray). Additional topics included behavior in social dilemmas (Dughera and Marciano), correlates of corruption (Dhillon and Nicolò), and rationality and group agency (Hyska). Methodologically, the references utilized experiments (Dasgupta and Radoniqi), modeling approaches (Hatlebakk, Halpern and Pass), and theoretical perspectives from philosophy, economics, and political science.
Here is a summary of the key points from the provided references:
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Many of the references discuss social contract theory and philosophical arguments around laws, authority, morality, responsibility, and justice. References explore ideas from thinkers like Hobbes, Locke, Rousseau, Hume, Rawls, and others.
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Economic theory and game theory are applied to analyze topics like cooperation, coordination, collective action problems, inequality, property rights, norms, and institutions. References examine equilibrium concepts and dynamic models.
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References also discuss empirical work on subjects like social norms, decision-making, generosity, and diversity in cooperation. Experimental studies explore factors like prosocial preferences and group biases.
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Additional areas covered include public reasoning, dissent, stability of consensus, separation of powers, antitrust, labor markets, social media data ownership, and analyses of specific historical figures and events.
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Methodologically, the references represent philosophic argumentation and analytical modeling as well as historical, legal, and case study approaches across diverse social science topics. Many propose theoretical frameworks and analyses of societal and economic problems.
In summary, the references cover a wide range of philosophical, economic, and empirical perspectives focused largely on social and political institutions, cooperative behavior, justice, responsibility, and analytical modeling of social phenomena. Both conceptual arguments and applied quantitative analyses are represented.
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