Extended Inclusive Fitness Theory Bridges Economics and Biology through a Common Understanding of Social Synergy

Abstract

Inclusive fitness was proposed half a century ago by W.D. Hamilton to explain the emergence and maintenance of cooperation that allows the existence of society. Contemporary evolutionary ecology identified several factors that increase inclusive fitness in addition to kinselection, such as assortation or homophily, and social synergies triggered by cooperation. Here we propose an Extend Inclusive Fitness Theory that includes in the fitness calculation all direct and indirect benefits an individual obtains by its own actions, and through interactions with kin and with genetically unrelated individuals. This theory focuses on the sustainable cost/benefit threshold ratio of cooperation "r" as the probability of individuals sharing mutually compatible genes, transcending the reductionist definition of Kin Selection Theory for "r" as pure 'genetic relatedness'. This expansion provides a much broader insight into the nature of social dynamics, allowing understanding the evolution of cooperation among kin and non-kin, intra- and interspecific cooperation, co-evolution, the emergence of symbioses, of social synergies, and the emergence of division of labor. This expanded theory allows understanding the evolution of social dynamics and the emergence of social synergies not only in biology but also in economics, promoting interdisciplinary cross fertilization of ideas. This theory includes a fundamental role for the division of labor in allowing the emergence of social synergies, providing an integrated framework for the study of both, biological evolution of social behavior and economic market dynamics.

Keywords: bioeconomy, evolution, synergy, inclusive fitness, kin, assortation, homophily, economic theory

JEL Classification: A10