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Spring 2003

ISSN 0890-913X

Volume 18, Number 2

Categories: Spring 2003 | Law

Contracts Without Government

Peter T. Leeson, George Mason University

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ContractsWithoutGovernment*PeterT.LeesonGeorgeMasonUniversityFromtimeimmemorialmenhaveponderedthequestionofanarchy.WhileitseemsasthoughgovernmenthassimplyAalwaysbeenthere,@itclearlyhasnot.Socialinteractionbothlogicallyandtemporallyprecedesgovernment.Menmusthaveinteractedfortheirpurposesatleasttosomedegreebeforethestateemerged.Indeed,withouttheirpriorinteractionforthispurposegovernmentcouldnothaveformedinthefirstplace.Recognitionofthisfactleadsustotheinsightthatwehavenotalwaysexistedinthecontextofthestate.Insomedistanttimeweexistedinanarchy.Thisfactbegsthequestion,Awheredoesgovernmentcomefrom?@Perhapsthemostprominentexplanationofgovernment=soriginmaintainsthatthestateemergesoutofaneedforcontractenforcement(Greif,1989;ZerbeandAnderson,2001;Landa,1994;Gunning,1972).Accordingtothisview,whichwewillcallthe>standardaccount,=wherethereisinfinitely-recurringcontactbetweencontractingparties,anarchyposesnoparticularproblem.Herethemarketmechanismcanbetrustedtoensurecooperation.However,intherealworldinfinitely-recurringcontactbetweenindividualsisunlikely.Consequently,thereisroomforgovernmenttoimprovethesituation.Awarenessofthisrealityleadsto*TheauthorwouldliketothanktheEarhartFoundationforfinancialsupportaswellasPeterBoettke,ChristopherCoyne,BryanCaplan,TylerCowen,theEditor,andtwoanonymousrefereesfortheirhelpfulcommentsandsuggestions.Theusualdisclaimerapplies.thedevelopmentofthestate.Government-providedcontractenforcementestablishestwoconditionsnecessaryforpeacefulexchange.Ontheonehand,statecontractenforcementgivesindividualsanexantebasisfortrust,reducinguncertaintyinexchange,andontheotherhand,itgivesindividualsthesecurityexpostthatifdefraudedtheycanachieverestitution.Inshort,the

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Metadata [hide]

Title	Contracts Without Government
Authors/Creators:	Peter T. Leeson, George Mason University
Year:	2003
Volume:	18
Number:	2
Pages:	35 - 54
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	Contracts, Government policy, Political science, Economic cooperation, Law enforcement, Arbitration, Law merchant, Polycentric law, International economic relations, Trade

Citation:
Leeson, Peter T. / 2003. "Contracts Without Government." The Journal of Private Enterprise, 18(2): 35-54.