When people talk about the theory of an Anarcho-Capitalist world, it often relies on a very micro perspective. The “governance” would come from areas living together and having the same private police and privates courts. In other words, if you wanted to live in a place where the death penalty exists then you can move there and the opposition can move somewhere else. There is another process for when these two societies have a dispute but that is for another post.
People as a player in the market will move around until they find a place they enjoy. This is much like condo or homeowners associations. Some of these associations are good and some are bad. Some manage money well and others let the place go downhill. These are systems of “governance” not government. Even with government we see this people who believe in gay marriage move to Massachusetts. Corporations that want lower taxes go to South Dakota. We can also see this in normal everyday life, like this example from an old Economist:
“Some folks in Texas recently decided to start a new community “containing 100% Ron Paul supporters.” Mr Paul is a staunch libertarian and until recently, a Republican presidential candidate. His most ardent fans are invited to build homesteads in “Paulville”, an empty patch of west Texas. Here they will be free. Free not to pay “for other people’s lifestyles [they] may not agree with.” and free from the irksome society of those who do not share their love for liberty.
Cynics chiuckle, and even Mr. Paul sounds unenthusiastic about the Paulville project, in which he had no hand. But his followers’ desire to segregate themselves is not unusual. Americans are increasingly forming like-minded clusters. Conservatives are choosing to live near other conservatives, and liberals are near liberals.”
The only problem here is how do they keep a liberal from moving in? If there is an advantage to living here, like say lower taxes, then how do you keep a hypocritical liberal from moving in. You would hope that this wouldn’t happen. If worse comes to worse, they are only one vote. They also cannot escape from federal statism. So I do not see a problem with this. The chance of that person coming in is small and the chance of them effecting the community is even smallers.
So it is interesting to see that people are naturally moving next to likeminded people. I think this is good for the free market and everyone.