I continue to publish the translation of The Machinery of Freedom by David Friedman.

In the chapter Bargaining in Anarchy, the author analyzes how, in a Hobbesian state of nature where there are no means to compel each other to abide by agreements, these very agreements can arise and be observed at all. In other words, how people exit the state of war of all against all without any state. To explain this, a rather curious concept from game theory is introduced: Schelling points. I don’t know about you, but for me, the material was completely new, so I sincerely enjoyed the process of editing the text.