Mechanics of Freedom, Chapter 54. Anarchy and Effective Law.

I present the translation of another chapter of The Machinery of Freedom, Anarchy and Effective Law. Here, Friedman recalls his description of the legal system in a free market and applies a standard economic efficiency analysis to it. The conclusion is that in the market for law, the benefit of law providers and its enforcers is not always precisely linked to the benefit of the clients of the respective agencies. In other words, ancap does not lead to one hundred percent justice for all, and the field of private law is also subject to market failures (which Friedman analyzes in detail in the previous chapter). Nevertheless, attempts to establish legal norms through political mechanisms are subject to similar failures to a much greater extent, so overall, the market still decides.

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