Scott Alexander looks at Charter Cities from first princples.

Scott Alexander reviews:

Medieval Icelandic crime victims would sell the right to pursue a perpetrator to the highest bidder. 18th century English justice replaced fines with criminals bribing prosecutors to drop cases. Somali judges compete on the free market; those who give bad verdicts get a reputation that drives away future customers.

“Anarcho-capitalism” evokes a dystopian cyberpunk future. But maybe that’s wrong. Maybe we’ve always been anarcho-capitalist. Maybe a state-run legal system isn’t a fact of nature, but a historical oddity as contingent as collectivized farming or nationalized railroads. Legal Systems Very Different From Ours, by anarcho-capitalist/legal scholar/medieval history buff David Friedman, successfully combines the author’s three special interests into a whirlwind tour of exotic law.