Cooperation to the detriment of the individual in the animal world is exactly the same phenomenon in a much simpler system. That is widely and repeatedly evolved so we know for a fact that the game theory works out in a vacuum (ie without human cultural factors).
Any high trust cultural behavior is similar.
- Biology gives us the instinct to cooperate and the capacity for empathy.
- Capitalism provides the mechanism to scale that cooperation to millions of strangers.
- Institutions (laws/culture) provide the rules that prevent the "vacuum" from devolving into a state where the strongest exploit the weakest (which is actually what happens in nature when policing fails).
Therefore, in a capitalistic society, cooperation to the detriment of the individual (e.g., paying taxes, following labor safety rules) is not just a biological imperative; it is a social contract enforced by culture to allow the complex system to function. Without the cultural layer, the biological layer alone is insufficient to sustain a modern economy.
I do not think this should be analysed from the perspective of an individual but from the perspective of being part of a collective.
Individually we are pathetic naked monkeys, collectively we are mighty
About voting with your wallet, I agree that it'd be best if companies actually had to pay for those externalities you mentioned. If you have spare money to spend, you can view not choosing the cheapest option as supporting or donating. That's what I sometimes do when e.g. buying locally instead of ordering from somewhere far for cheaper. I can get local faster and it's more convenient, so there's lazyness, but thinking about it as supporting helps me rationalize it further (and it is true). I don't think it really hurts me more than buying something else that I don't strictly need. I see indirect value in trying to uphold things I like.