The Underpants Gnomes Theory of the State

You might be familiar with the underpants gnomes business plan:

  1. Collect Underpants
  2. ???
  3. Profit

It occurred to me that the traditional prisoners’ dilemma (PD) justification of the state has a similar logic. The traditional story says that life in the state of nature is a PD, where everyone has the incentive to cheat rather than cooperate. But since everyone would be better off cooperating, it’s in their interest to form a government that forces them to cooperate. Or:

  1. People in the state of nature would benefit from establishing a government.
  2. ???
  3. Therefore, government

What this justification skips over is an explanation of how people could establish a government. Government is treated as a deus ex machina, an “external” institution that is simply “given.” The traditional story throws rational choice out the window: instead of resulting from individual actions, government just magically pops into existence when its total social benefits outweigh total social costs.

Jason Briggeman, in his paper “Governance as a Strategy in State-of-Nature Games,” sets out to remedy this situation by providing a rational choice model of the establishment of government, what he calls the “Prisoners’ Dilemma with Coercion.”

As he writes: “To model this Hobbesian situation with the tools of game theory, it would seem to be required that society’s governor be an internal player who chooses strategies, not an external model-builder who sets payoffs.” Take that Buchanan!

You can’t remedy a situation of logic.

??

I believe the proper version of this is:

1-Steal/redistribute money, pretend that stealing creates wealth rather then shuffling it to people who won’t use the money productively

2-???

3-Get elected!

Reminds me of Keynesian stimulus theory…

  1. Deficit spending
  2. ???
  3. Economy grows!

Clayton -

And of course the nirvana fallacy:

  1. There’s a problem with the market.
  2. ???
  3. Therefore, government intervention!