Suppose you are travelling through the jungle and you come across a fork in the trail where two tribes have their village. You need help with directions to a location that is deep in the jungle and incredibly difficult to find...and you need to get there fast. Each tribe claims to know the way and wishes to provide you with a guide. Unfortunately, the two tribes disagree on the route you should take.
The first tribe is known to be incredibly altruistic. Members are always honest and have nothing but the interest of others in mind. As a result, their society is the picture of equality. Everyone does their best and enjoys equal footing in the tribe. After escorting you the guide from this tribe will happily return to his previous comfort and security.
The second tribe is notoriously selfish. Society is incredibly meritocratic—every member is entirely self-interested and strives to achieve the highest rank within the tribe. The guide escorting you from this tribe will be well rewarded if he is successful—he will gain immense status in tribe, a larger hut, more plentiful food, and many beautiful wives. However, if he is unsuccessful his standing in the tribe will fall considerably. If he fails badly enough, he will be entirely banished from the village. This tradition is strictly enforced.
Which guide do you chose?
Now suppose on returning from your journey you are bitten by a deadly jungle snake. Each tribe claims to have the only (but different) anti-venom to help you survive?
Do you trust the first tribe or the second tribe? Oh, and suppose you’ve discovered that the tribes are equally self-serving, they have just set up entirely different institutions.
(Inspired by this article.)
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