The Prisoner's Dilemma by Sean Stuart O'Connor Read Free Book Online

as the means. It is this that lies at the heart of efficient markets and I have come to the conclusion that such markets have their own unerring logic – it is almost as if an invisible hand were guiding them – in which,for example, too much of one thing leads its price to fall or one specialisation loses value against another. A correction must take place for equilibrium to return. And good markets are in a state of constant flux to achieve this – a flux driven by people acting to further their own self-interests. In many ways it is this movement that keeps them healthy.’
    For the first time in some minutes, Adam Smith glanced quickly at Hume and saw that the older man was gazing intently back at him.
    â€˜I have seen that look many times from my tutors,’ he said. ‘I assume you do not agree. Or have I offended you in some way?’
    â€˜Not at all, Mr Smith,’ replied Hume, ‘but answer me this. I think I understand your view that society is based on self-interest. Or rather the transaction of self-interested specialisations. But why, in that case, is there ever virtue? Or altruism? Why do people ever behave without reward? Why do they sometimes show compassion? And, more importantly, why do they regard such actions and sentiments so highly?’
    â€˜I know,’ said Smith, and for the first time since he’d arrived that evening a doubtful tone entered his voice. ‘A very good question indeed. And I have but a tentative answer. It is my observation that human beings share a taboo against selfishness. Indeed, it is almost the definition of what we would call vice. I agree that finding an answer to your question is vital. The praise people give to virtuous things seems always to be concerned with the welfare of others. I know that there must always be a requirement for sympathy towards one’s fellow beings in our dealings with them but I must confess that I cannot explain virtue in the way that I can explain self-interest.’
    â€˜Ah,’ replied Hume quickly, ‘you reject my belief in natural benevolence but you’ll accept what you call ‘sympathy’ will you? But surely this sympathy of yours is incompatible with the specialisation and self-interest that you say glues society together. How do you reconcile the two?’
    Smith looked away into the air and seemed to speak more to himself than to Hume.
    â€˜Yes, I agree, altruism and compassion don’t fit with my picture of a world based on rational transaction, do they? I’ve often wondered about this; about why people are ever good.’
    He glanced back towards Hume.
    â€˜I have given this much thought and I suspect that these actions and feelings spring out of shame for our selfish natures, but I have no evidence to support my view.’
    At this Hume smiled broadly. Then he laughed and reached inside his coat pocket and brought out the paper he had put there earlier.
    â€˜By the most remarkable coincidence, Mr Smith, I have just received a letter on this precise subject,’ he said. ‘In fact, I was reading it when you arrived. It is from an old university friend of mine, the Earl of Dunbeath. Perhaps you will permit me to read you what he has to say?’
    Adam Smith sat more upright in his chair and nodded in interest. Hume picked up the candle and, holding it to the letter, he read aloud.
    â€˜Hume
,
    I understand you are to be called ‘The Father of the Enlightenment!’
    â€˜I do beg your pardon, Mr Smith,’ Hume said quickly, putting the letter to one side with an embarrassed grimace. ‘I should have omitted that ridiculous comment. I’m afraid one must expect such a slash of irony from Lord Dunbeath to open with. Pray ignore it and permit me to continue.’
    But your cause is the same as mine – to be empirical. To find evidence! Mine is to unlock the secret perfection of the planets, just as yours is to understand the secrets of