The ruling, therefore, must be acceptable to the groups to which both parties in the dispute belong. The only real power an arbitrator or mediator holds under such a system is that of persuasion. Liability, intent, the value of the damages, and the status of the offended person all may be considered in determining the indemnity. Every invasion of person or property is generally valued in terms of property. The adjudicated solutions tend to be accepted due to fear of this severe boycott sanction.
Markets coordinate interactions, as does customary law.
Both develop as they do because the actions they are intended to coordinate are performed more effectively under one system or process than another. The more effective institutional arrangement replaces the less effective one. The evolutionary process is not one of deliberate design. Others saw some of those benefits and either joined existing groups or copied their successful characteristics and formed new groups.