"I am genuinely not sure how to introduce this topic if you have never encountered it before, but sometimes in real life, a group of people have to work towards a common goal, and at the end get some payout in common that they have to divide up - according to previously agreed-upon rules, if they were smart. Games can work like that too, and should, if they're trying to mirror that kind of reality. Chelish Governance is going to be trying to make the game work like that, that's sort of the whole point of having a government in the first place."
"The other thing that's missing is that you don't - seem to have a current notion of what you're trying to find out from the game - you know, I think I may be doing this wrong and not providing you with enough direction literally the first time you're doing this. You play games with older kids leading, before you get handed some problem that requires you to invent a game for younger kids to play with you. Well, I may just be motivated to think that because of my personal interest in having this particular topic taught quickly; still, the rationalization seems valid after having been invented."
"So! Things you could be testing in this game include alternate rules that Chelish governance could give the players about subsidies and rewards, which would lead players each trying to maximize their own score, to do useful things for heritage-optimization. And now it's occurring to me that maybe you don't already have this concept, maybe people here just make up laws that sound like good ideas and don't play games to figure out what the laws will do in their effects on selfish people. In which case I also have to, at some point, convey basic competence for figuring out what effects different legal systems would have and optimizing better laws, which, the complete wreckage of what my own people consider Lawfulness in Golarion, should maybe have suggested to me earlier was also going to end up a Project issue, but never mind one thing at a time."
"The other thing you were going to investigate was the effect of adding one person with different bits of heritage to the system. So for now, just make up some fixed rules about points that players score by having smarter characters in their hand, let's say there's at most three characters you can keep in your hand at one time, and your objective is not to score higher than other players, it's just to score as many points as possible for yourself. Characters can be male or female at random; men can have any number of children in a lifetime, women can have only three children per lifetime. When any two players mate their characters, they have to agree in advance on which player will retain the resulting offspring. Any time a mating occurs between two characters one of whom has over ten smarts, the Chelish government pays an extra point to whichever player doesn't end up owning the resulting offspring. Any time a mating occurs between two characters both with over ten smarts, the Chelish government pays an extra three points to whichever player doesn't end up owning the resulting offspring. At the end of the game, everybody gets a bonus equal to total smarts divided by ten, which mirrors the real-life fact that smart people don't capture all of the value they create for themselves and that smarter societies end up generally richer even for the nonsmart people in them; and remember, your in-game goal is to maximize your total points for yourself, not worry at all about how many points other players are scoring..." Keltham goes on sketching some additional rules intended to make the game mirror real-life genetics, and real-life incentives under conditions of government subsidy.
Each player gets one free mating at the start of the game with the 'Thamkel' character, which is the only one that has any 'smart' or 'dumb' values at the fourth locus of each chromosome - all other characters have 'neutral' at the fourth locus. 'Thamkel' also has only neutral values at the first locus, where other characters can have 'smart' or 'dumb' there. This reflects the way that Thamkel has some different varying bits. You can't legally mate two Thamkel offspring during the first two generations afterwards. There are a few other characters as smart as Thamkel, but only Thamkel has any variation in the fourth locus for each chromosome.
And then Keltham observes what happens under the new game conditions. Do they - sort of get the point of the simulation, now, or the incentives? At all?