Division of labour and the minimal state

Abstract

This paper studies Nozick’s invisible-hand account of the minimal state through an extension of Bruner’s model, taking seriously Nozick’s remarks on division of labour and market pressures. I develop a game-theoretic model in which a compatibility premium – higher cooperative success among agents who share protective procedures – transforms part of Nozick’s state of nature into an assurance environment with tipping dynamics. Under suitable parameter values, the model yields a dominant protective agency while preserving side constraints and non-worsening for independents. Commercial compatibility can make Nozick’s invisible-hand story more dynamically plausible, even though the remaining obstacle is coordination rather than conflict alone.