A long-standing debate between libertarians and others concerns the extent to which a state is needed to enforce cooperative rules. Many libertarians argue that informal, self-sustaining agreements can achieve desirable outcomes even without the state acting as a third-party enforcer. See here for a particularly interesting version of this argument and various counter-arguments.
Bo Rothstein's fascinating paper on efficient institutions concludes with a great story from the TV series "The Sopranos," which speaks directly to this issue and is worth quoting at length.
In a state of rage, the mob leader himself, Tony Soprano, with a gun in his hand goes after a low level gang member that has betrayed him and kills him. Usually, he would of course have used an underling for an operation like this, but this time ... he is so overtaken by emotions that he forgets the golden rule that mafia bosses should never do any of the dirty work themselves. As it happens, he is seen by an “ordinary citizen” chasing after the victim. This eyewitness goes to the police, not knowing that it is the local mafia leader that he has seen. The “ordinary Joe” tells the police that he is just sick and tired of all the violence in his neighbourhood and that he as a law-abiding citizen wants to help the police to clean up the neighbourhood. When the police commissars show him a bunch of photos of known criminals, he directly identifies the perpetrator - still not knowing who the person he identifies is. After he has left the police station, the police commissars are in a state of joy since they now seem to have what they need to put Tony Soprano behind bars.
In the next scene, the eye-witness is sitting comfortably in what seems to be a middle-class home listening to classical music. A woman his age, probably his wife, is sitting close to him reading the newspaper. Suddenly she starts screaming and then shouts at him to read an article in the paper. The article makes it clear to this honest and law-abiding citizen that the person he has identified at the police station as the perpetrator is the well-known local mafia leader Tony Soprano. The law-abiding citizen then throws himself at the phone, calls the police commissar who’s direct number he has, and in a terrified voice says that he did not see anything and that he will not become a witness.
The interesting thing is the book our law-abiding citizen was reading before his wife showed him the newspaper article. An observant spectator has about one second to see that it is the philosopher Robert Nozick’s modern classic Anarchy, State and Utopia - an icon for all ultraliberal, anti-government and free-market proponents ever since it was published (Nozick 1974).
The message from the people behind the Sopranos show seems clear: In a “stateless” Robert Nozick type of society, where everything should be arranged by individual, freely entered contracts, markets will deteriorate into organized crime. The conclusion is again, that there can be a market for anything as long as there is not a market for everything. Or in other words, if everything is for sale, markets will not come close to what should count as social efficiency.
Who knew that the writers of the show were academics manque?
By the way, Rothstein's Quality of Government Institute maintains an extensive data base on institutional indicators across countries and over time. It should be an important resource for people working on these topics.
UPDATE: Thank to Mike2 for posting a link to this YouTube video, which makes the point rather nicely.
A very nice informational blog.Keep on making such important blog post.Your work is really being appreciated by some one.
How To Make Grape Wine
Fine Woodworking Plans
Posted by: Baruch Shaul | June 14, 2011 at 10:50 AM
I think you haven given the real answer to many questions in relation with a democratic country....So reading this article will definitely awake the eyes of many citizens
Posted by: Account Deleted | June 28, 2011 at 07:00 AM
Many places and centers offer business and trade promotions to both buyers and supplier.What about the differences in skill intensities across industries? The job losses in the relatively unskilled-labor intensive battery industry should have little effect on the relatively skilled-labor intensive machinery
sexshop
sexyshop
sexshop online
alongador peniano
Posted by: Account Deleted | July 21, 2011 at 08:32 PM
This is an excellent point. Many bloggers will get involved in intelligent conversation on your blog because they know that they will get a link back to their own blog. When the link takes you to Facebook, it becomes much less appealing.utah web designers
Posted by: Account Deleted | September 26, 2011 at 09:24 PM
Hi
it is working fine. I have done the comment form also. It is also fine.
Now I am playing with inserting Adsense in diff. positions.
You can see my blog …utah web design
Posted by: Account Deleted | October 06, 2011 at 10:04 PM
Both of these i love to Robert Nozick as a writer which stain a great signs..
Legal Steroids
Posted by: Account Deleted | October 14, 2011 at 05:19 PM
I truly delight in this template youve got going on inside your site. Nikola Tesla Free Energy Machine.
Posted by: Tinnitustreat | October 15, 2011 at 03:07 PM
From episode one, mob boss Tony Soprano sits in psychotherapy and ... reading the late Robert Nozick?s eloquent critique of the welfare.
House for Sale
Posted by: Account Deleted | October 21, 2011 at 12:52 AM
interesting! although I have no expert, but I want have to know more and more, on your blog just interesting and useful information. Keep it up!Melvin
Posted by: Instant Insurance | December 22, 2011 at 03:47 PM
San Diego Real Estate Online provides all of the homes available for sale, including several hundred that are not available to the general public yet... Check out the new foreclosures and make offers before any other buyer!
Please visit at our website:
http://www.sandiegorealestateonline.com/
Posted by: Account Deleted | January 14, 2012 at 12:33 AM
i like your blog because your blog is very informative for me please share with me.
The Kettlebell Shop is Australias premier online supplier of quality Kettlebells at
great prices. $20 flat fee delivery to major cities!! We deliver Australia wide.
More info please visit at our website:http://www.thekettlebellshop.com.au./
Posted by: Account Deleted | January 15, 2012 at 03:19 AM
I’m intrigued by the idea of a free society based on voluntary actions espoused by some libertarians. I like the idea...
Sales Letter Video
Youtube Marketing Video
Posted by: Account Deleted | January 17, 2012 at 06:15 AM
http://foodscienceproductdevelopment.com/
"Beverage Consulting"
Providing professional and qualified experience for the food and beverage development industry Food Science Chef provides high quality and cost-effective new food product and everage development services and qualified experience for the food and beverage development industry.
Posted by: Account Deleted | March 01, 2012 at 07:48 AM
recover powerpoint file
Good Post.It's really helpful & interesting
Posted by: Account Deleted | May 23, 2012 at 04:19 AM
URL:- http://chargedoff.org
Keyword:- Charged Off Debts
Credit repair isn’t just about removing negative items. It’s also about building positive credit by adjusting your spending habits and developing a good record of responsible debt repayment.
In this article, I will share my true credit repair story with you. I’ll tell you how to accomplish both sides of the credit repair task ahead of you: delete negative items and build good credit.
My credit troubles began with a few maxed out credit cards. The interest got out of control, and eventually it got to the point where the card balance was so high I couldn’t even make the minimum payments each month. For a long time I’d been treading water financially, but now I was actually sinking.
Posted by: Account Deleted | May 28, 2012 at 08:25 AM
Great info thanks for the effort in explaining all of this ...
We supply all sectors of business with a wide range of portable heater hire, mobile boiler hire, air conditioning hire, industrial cooling and chiller hire.
Please more info visit at our website
http://www.allseasonshire.eu/
Posted by: Account Deleted | May 29, 2012 at 12:34 AM
Thanks!
SELL YOUR HOUSE NASHVILLE
Posted by: SellHouseNash | June 21, 2012 at 02:38 PM
Dear Sir/Madam,
I have seen you blog and gone through it. It is very fantastic and interesting. It contents are really so good that hepls in relevent search. I like this very much. In other hand there is website familiar to kids costume which gives effective and pleasant search results.
Please visit my website get desired search with easy keywords.
Url:- http://www.familienladen24.de/karneval-fasching/kostueme-fuer-kleinkinder-0-65/
Keyword:- Kostüm für Karneval
Posted by: Rajivbisbas | October 28, 2012 at 02:51 AM
Dear Sir/Madam,
I liked your blog . It gave me a lot of informetion. Please also visit my website for some more informetion related to it.
Url:- http://www.karneval-fasching-kostuem-kostueme.de/kostueme-kinder.html
Keyword:- faschingskostüme kleinkinder
Website Description:-
Wir haben eine riesige Sammlung von Kostüm Kinder, Kostüme Kinder, Prinzessin Kostüm und Faschingskostüme für Kinder. Shop Karnevalskostüme Kinder, Karneval Kostüme Kinder, Faschingskostüme Kinder, Cowboy Kostüm und vieles mehr zu einem der größten Shops in Deutschland.
Posted by: Rajivbisbas | November 17, 2012 at 08:18 AM
Dear Sir/Madam,
I liked your blog . It gave me a lot of informetion. Please also visit my website for some more informetion related to it.
Url:- http://www.CryptX2.com/
Keyword:- Secure Storage
Website Description:-
An Open Source Hardware Encrypted Storage Device.
Posted by: Charls David | December 12, 2012 at 12:58 AM
thank you for sharing.
Ultrabook Parts|AU AC Adapters|Global AC Adapter|Ersatz Laptop Akkus
Posted by: Kinsell Emma | March 06, 2013 at 03:39 AM
My friend mentioned to me your blog, so I thought I’d read it for myself. Very interesting insights, will be back for more!
haber haberler
oyun oyna oyunlar
volvo özel servis
Posted by: HnOyun | March 12, 2013 at 09:34 AM
当社は高機能な製品を皆様に提供し、多くのお客様にご満足いただけるよう願っております。当社サイトをどうぞご自由にご覧ください。ご質問ご意見等がございましたらご遠慮なくご連絡ください。
当社は各メーカー製造元の仕様に見合った、もしくはそれを凌ぐ交換、互換用の新品電池を販売しております。部材を大量に仕入れることによりコストダウンを計り、その分をお客様に還元しております。約300平方メータの倉庫には常時5,000個以上の在庫がありますので、お客様に質の高いサービスを提供することができます。
バッテリーパック試験用の施設が整っておりますので、最先端の携帯用家電製品の最新式バッテリーパックの検査が可能です。徹底した品質管理のもと、一流の業者からの高品質の材料を仕入れて製造・販売しております。
当社では、特定の電気メーカーの製品に[交換]使用可能な製品を提供しております。単に当社製品の[交換]使用可能性を示す目的で、その製造元の商標や製品情報を利用しております。当社または当サイトは、これらの製造元に所属すること、権限が与えられること、認可される事等は一切ありません。また、当社はその製造元の代理店ではありません。当サイトにて販売されている製品は、その製造元の認可で互換製品として製造及び販売を行っておりません。http://www.gooddenchi.jp/
Posted by: Cheri Deng | March 13, 2014 at 02:46 AM