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Lawlessness and Economics

Alternative Modes of Governance
Summary:

The book explores the mechanisms of governance in situations where traditional legal enforcement is weak or absent, examining how non-legal institutions can effectively regulate economic interactions. It delves into various alternative governance structures, such as reputation, private ordering, and community enforcement, to understand how they can provide order and facilitate trade in the absence of formal legal systems.

Key points:

1. Governance Structures' Importance: Dixit points out that in places with weak legal systems, social norms, reputation, and informal agreements are key for business and trade.

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