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I can't remember (possibly not Greg Egan). In case someone else knows, the main plot is that the characters have to act as inhabitants of a primitive village, in a computer game/simulation.

Probably neither of these (depending on your definition of primitive), but they're interesting anyway:

The Cookie Monster[1] by Vernor Vinge

Glasshouse[2] by Charles Stross

[1] https://en.wikipedia.org/wiki/The_Cookie_Monster_%28novella%... (WP link, contains spoilers)

[2] https://en.wikipedia.org/wiki/Glasshouse_%28novel%29

Almost all of them.

Possibly he refers to Permutation City. Absolutely necessary read.