Matt_Simpson comments on Open Thread June 2010, Part 4 - Less Wrong
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The definition of group selection, from Wikipedia:
The key is that the benefit to the group is at least part of what is driving the adaptation. Now an adaptation (like tit-for-tat) can certainly benefit the group, but that doesn't mean there is group selection going on - the benefit to the group has to be part of the cause for the trait's spread, apart from the benefit from the individual.
Tit-for-tat is individually fitness maximizing in many situations. In fact, it's an Evolutionary Stable Strategy. So in a population of tit-for-tat players, it's fitness maximizing to play tit-for-tat. So tit-for-tat is not an example of group selection, or at least it's existence doesn't imply group selection has occurred.
That's a decision of a small group of people imposed on a much larger group of people. If each person was individually choosing to have only one child, then it might be group selection. With that being said, the changing birth patterns of developed countries is an interesting phenomena to consider. It's probably just a case of external conditions changing faster than evolution changes us though.