Comment: private sector incentives

(See in situ)


private sector incentives

private sector incentives stem from the fact that they are private sector. they are not responsible for exercising force to protect their property at all moments. by removing violence from the equation, law compels private actors compete in the market, productively. remove the law, and people will not behave as they do in markets. violence will revert to be the right and province of every individual or group. if they delegate this violence to mini states, there is no reason to assume these mini private states will behave differently than feudal estates with armed defenders behaved. feudalism was a form of organized anarchy.

it is just groundless speculation to assume law, contracts, law suits, courts, etc. would continue to operate in the absence of coercive law, simply because its in "everyone's interest." lots of things are in "everyones" interest that individuals won't have an incentive to do on their own, if some external force does not compel them.

its a misconception of human nature and of how law arises that drives these misplaced extrapolations of economic theory outside their rightful bounds.

it appears only isolated academics believe in such things.