Sasan,

Thanks for clarifying things for people like us, who were
generally raised in heavy fog. Let me add that technology will
continue to make it easier for reputations to be known. 

Technology seems to be the great under-addressed force for
change. Try to imagine talking and leaning about a
government-less society without computers or the internet. I've
heard it said that people don't really change, but technology
"forces" them to. It seems to have some merit. Of course some
technologies empower people to aggress others in new ways, but
other technologies encourage them to behave. Latter ones include
DNA forensics and recording technologies. Of course computing
technologies make all other technologies more efficient,
especially communications technologies. Now consider using these
technologies against the state. "Big Brother" video cameras are
not inherently bad; they are just pointed at the wrong people.
You are starting to see it already on YT with all the cell-phone
cameras capturing all that police brutality. Now just try to
imagine the effects of a few technologies evolving just a wee bit
further. We will all have cell phones that are not only online
24/7 and recording HQ video and audio 24/7, but will also have
face & voice recognition software (that works). Among other
things, this will reveal the real criminals by literally tracking
people's reputations online. Imagine meeting a potential business
partner, and after seeing his face and hearing his voice, your
cell phone immediately tells you some unflattering things about
him. You then tell him you need time to think about his
proposition, and you go to the computer and Google his name and
up pops evidence of past bad business. Same goes for potential
friends, mates, employees, employers, etc. In the future,
everyone will be Googlable; and for some, Google will be a worse
prison than bars and concrete. Your reputation the perfect life
sentence, because it's of your own making.


---------------------------------


Allow me to address these points one at a time.

First is the accusation that a private arbiter may show
favoritism
when making decisions. Since an arbiter's success depends
ENTIRELY on
how fair they are perceived to be, it seems to me that an arbiter
would want to avoid favoritism at all costs. You can also expect
to
see an arbiter refuse to handle certain cases simply because
there may
be a conflict of interest. 

Corruption is a product of POWER, and arbiters have no power.
They are
simply performing a service under contract. Courts, however, DO
have
power and are therefore corruptible. This is the difference
between
VOLUNTARY and COERCIVE systems.

Second is your assertion that the decision of the arbiter may be
ignored simply because one party may be stronger than the other.
Are
there no market forces that would prevent such a situation? 

In a voluntary society your reputation is EVERYTHING. Without a
solid
standing in the community you will find it very difficult to
survive.
How do you think that your reputation will be affected if it
becomes
known that you do not honor contracts?

Third is your implication that arbitration must be forced onto
the
disputants or else the conflict will become a "contest of
strength".
You seem to be forgetting another market force which keeps such
situations in check: TRADITION. 

In the absence of Government intervention, traditions develop
over
time to provide guidelines for a civilized society. In a
voluntary
society, tradition will dictate that disputants must first
attempt to
resolve conflicts through peaceful means such as arbitration. The
price for violating tradition is a tarnishing of your reputation,
and
as we discussed before, the Court of Public Opinion is a
tremendous
market force.

I mentioned is a previous post that the technique most often used
by
those in favor of Governments is to identify all of the
worst-case
scenarios that may occur without Government. While all of these
dire
predictions are technically possible, one thing is absolutely
clear:
forming a criminal protection racket (Government) does absolutely
NOTHING to prevent these problems. 

Governments are highly proficient at CREATING conflicts, not
resolving
them.

---Sasan

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