Segundo Parcial - Law and Economics

Surgimiento de las normas mediante puntos focales (Emergence of norms via Schelling points)

This concept explains the spontaneous emergence of norms and rights, viewing them as institutions that arise through a forma de actuación que genera una convergencia de expectativas mutuas when actors must coordinate without communication, thus leading to the selection of the most obvious or unique solution.

Arbitraje (Arbitration)

Arbitration is a private, lower-cost method of conflict resolution, preferred over violence, where neutral third parties (arbitrators) decide cases based on private norms or precedents, aiming for a peaceful settlement.

Reputación (Reputation)

Reputation is the critical asset of an arbitrator or security agency, based on their perceived honesty, impartiality, and wisdom, which dictates whether disputing parties agree to use them, as a bad reputation leads to business disintegration.

Por qué la gente aceptaría arbitraje (Why people accept it)

People accept arbitration because the primary goal is achieving a peaceful resolution, and rejecting an impartial decision leads to a loss of reputation and the withdrawal of defense from one's protection agency.

Eficiencia (Efficiency)

Competition among protective agencies and adjudication bodies is highly effective in solving the "public-goods" problem of law and order, acting as a healthy check on undesirable behavior and promoting the provision of justice at the cheapest price.

Por qué no habría compensación excesiva (Why no excessive compensation)

Excessive awards are unlikely because normal people seek justice rather than using criminal victimization as an opportunity to get rich, and arbitration firms would guard their reputation for fairness, making unjust awards difficult to enforce or collect.

Disciplina de los acuerdos frecuentes (Discipline of constant dealings)

This discipline enforces contracts because individuals who violate arbitration decisions or fail to keep promises will lose their reputation, making it difficult to engage in future beneficial business and social interactions.

Coste de la violencia (Cost of violence)

Violence, or warfare, is an economically costly way of resolving disputes, is highly escalable, and involves great uncertainty about the outcome, which incentivizes private agencies to develop lower-cost methods of settlement.

Islandia (Medieval Iceland)

This historical example represents a society with a sophisticated legal system that operated as a functional anarcho-capitalist system for over three hundred years, characterized by private law enforcement and the absence of a king or executive branch.

Sistema de derecho plenamente privado (Fully Private Law System)

In Medieval Iceland, all law was considered tort law, requiring the victim of a crime to be individually responsible for prosecution and enforcement of their claim.

Compraventa del derecho a ver un daño resarcido (Transferability of Claims)

This mechanism allowed a victim too weak to enforce a damage claim (or see the damage repaired) against a more powerful individual to sell that claim to a stronger person, often a chieftain, who would then enforce it.

Leyes ocaso (Sunset Laws)

This was an Icelandic legislative mechanism wherein the Lawspeaker had to publicly recite the entire law code over three years at the Allthing assembly, and any part omitted and left unchallenged was automatically removed from the law.

No tan salvaje oeste (The Not So Wild, Wild West)

This historical period is presented as an example of applied anarcho-capitalism where property rights were protected and civil order prevailed, contradicting the chaotic legend, because order was maintained by voluntary, private protection agencies.

Agencias de seguridad (Security Agencies)

These are voluntary organizations or firms, such as Land Clubs and Cattlemen's Associations, that took on the function of providing law enforcement, defining and protecting rights, and maintaining civil order without possessing a legal monopoly on coercion.

Policentrismo (Polycentrism)

This describes the coexistence and competition of multiple, independent jurisdictions and courts (as seen in mining camps), where rulings were mutually respected, allowing individuals to favor the most just options and ensuring competition served as a check on justice.

Amish

The Amish are a Protestant sect who, permitted by the governments of Canada and the U.S. to self-regulate, maintain a separate, highly structured social order based on the selective rejection of modern technologies to preserve their community structure.

Mecanismo para entrar en la comunidad (Mechanism for joining)

Young Amish adults (age 16 to 20) go through *Rumspringa*, a period where they can experience the non-Amish world before deciding to be baptized and commit, as adults, to the community’s specific rules (*Ordnung*).

Castigos (Punishments - Amish)

Penalties for violating the *Ordnung* start with warnings and escalate to a punishment consensually voted on by the congregation, with the ultimate sanction being **Meidung** (shunning/excommunication), which severely restricts social and business interaction with the offending member.

Piratas (Pirates)

These were violent criminals in the early eighteenth century who, because they could not rely on government law, created their own internal law (their "articles") to regulate behavior and resolve conflicts among crewmembers necessary for cooperation and successful plundering.

División de poderes (Division of Powers - Pirates)

Authority on pirate ships was intentionally split between the Captain (who only commanded during combat) and the democratically elected **Quartermaster** (who handled civil authority, discipline, and distribution of goods) to constrain authority and prevent abuse of power.

Gorrones (Free-riders/Criminals - Pirates)

This term refers to violent individuals within pirate crews who had an incentive to evade dangerous situations in combat (free-riding) because they expected to earn the same share regardless of their bravery, leading to internal rules like employment insurance to mitigate this behavior.

Castigos (Punishments - Pirates)

Pirate articles stipulated corporal and severe penalties, including lashing, bodily mutilation (like slitting ears and nose), marooning (abandonment on a deserted land), and death for serious offenses like desertion, theft, or bringing women aboard disguised