I disagree that prisoners dilemma is applicable to invisible hand theory, or if it is then the resulting framework of law is equally part of that. Those who default are not trusted, and so no contracts are awarded them, therefore default is avoided. Equally trust is only extended based on reputation, leading to a coherent framework that communicates. The creation of law to enforce outside of that level of understanding is an extension of the market wishing to extend itself to more anonymous contract, which would demand an oversite to corroborate completion or asign dues for non completion. Therefore the court is an extension of trade and market, it does not appear mysteriously as some apart that the public decides to create for common good.
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