Newsgroups: bit.listserv.xtropy-l
Date:         Wed, 23 Dec 1992 10:36:40 PST
              <XTROPY-L@UBVM.BITNET>
From:         Hal Finney <ghsvax!hal@UUNET.UU.NET>
Subject:      Privately Produced Law

One of the Extropian "buzzwords" is Privately Produced Law, often
abbreviated PPL.  This terminology goes back to an article in Extropy
by Tom Morrow, I believe.  But the concept is basically the same as
what is sometimes called "anarchocapitalism", and which can be found
discussed at length in such books as David Friedman's "The Machinery
of Freedom" and a book by Bruce Benson whose title escapes me now.

The basic concept can be seen as an extension of libertarianism.
Libertarians want to reduce the power of the state, the government, to
just the basic functions.  PPL goes beyond this to privatize _all_ the
functions of government.

In PPL, there would be different organizations which, for a fee, would
provide the services which we associate today with government.  In
particular, PPL agencies would provide legal systems which would be
used to settle disputes and keep the peace.

Today, there are many competing legal systems, but they are
geographically separated.  What legal system you live under depends on
where you live.  A person living in London will be subject to
different laws than a person living in New York or one living in
Moscow.  To some extent, these legal systems can be seen as competing,
in that people can move from place to place in order to find a legal
system they prefer.

PPL basically extends this concept to a system where legal systems are
not geographically determined, but for which each individual can
choose which legal system he prefers.  Basically, he could sign up as
a client with the PPL firm that he chooses.  Each PPL system would
publish a code of laws which it would enforce on behalf of its
clients, along with a schedule of fees for membership.  As in any
market based system, the variety of choices available to consumers and
the costs of the various choices would depend fundamentally on supply
and demand: demand based on the preferences of the people involved,
and supply determined by the difficulty of providing the various
legal alternatives.

The first question that most people ask when presented with this idea
is, what happens when two people come into some conflict who are
members of different PPL agencies?  Whose law takes precedence?

Without trying to predict exactly how such a system would work, there
are several possible answers.  It is expected that the various PPL
agencies will work out "treaties", contract-based agreements for how
to resolve these types of conflicts.  This might work similarly to how
treaties now work between nations to resolve similar cases where it's
unclear whose law applies.  It is _not_ expected that PPL agencies
would "go to war" with each other over such disagreements, any more
than the U.S. and England would go to war whenever a jurisdictional
issue arises.  War is expensive.

There may also be private arbitration agencies established
specifically to judge inter-agency disputes.  In a case of conflicting
PPL agency claims, the arbitration agency would decide on how the
claim would be settled.

There are several advantages to a PPL system.  First, it basically
allows the market to decide on the set of laws in use.  This should
expose the costs of various legal systems more clearly, allowing
consumers to make better decisions about which laws they wish to live
under.  Our present legal system does not lend itself to decision
making based on costs and benefits very well.

Also, a market based system allows room for niche and minority views.
Standard law is an all-or-nothing affair; the minority tends to get
completely overridden by the majority.  Markets, on the other hand,
can offer options to even rather small minorities.  If most people
prefer coffee, there is still a market for tea drinkers.

In addition, a PPL system does not require people to accept a
particular view of the purpose of government.  There is room for a
variety of views, each with its own set of PPL agencies.  This should
reduce the political tensions which exist under the present "winner
take all" system, where each group works to convince others to join
their cause.

PPL is relatively untried, but there have been some historical
precedents.  Friedman's book describes medieval Iceland as having many
characteristics similar to the modern concept of PPL.  It is a good
reference for learning more about this concept.

From the point of view of Extropians, PPL extends the Extropian
principle of Spontaneous Order to the legal arena.  Through the
interaction of PPL agencies, arbitration services, and private
individuals, "law and order" can be provided without the need for
centralized monopolies in the form of governments.

Hal Finney
hal@ghs.com
Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU