Ordered Anarchy: Evolution of the Decentralized Legal Order in the Icelandic Commonwealth

Abstract

"The task in this paper is to come up with a theory of cooperation and, then, apply that theory to a particular historical case. The historical case discussed is the rise and evolution of social order in medieval Iceland; the so-called Commonwealth period. The Commonwealth experience poses an interesting question; how did the Commonwealth emerge.

"The concepts of reciprocity and cooperation are discussed first, and then an evolutionary theory of cooperation is offered. Next, the theory is put to the test of actually explaining the rise of the Commonwealth's institutional structure. The theory is found highly informative in application and able to account for Iceland's institutional structure. Reciprocal behavior on the part of the Icelanders initiated and created the cooperative institutional system. The keys to stability of the system are found in the encouragement of nonreciprocal behaviour, where the future repeated engagements are important enough to discourage defections. The Commonwealth was a decentralized structure, based mostly on voluntary cooperation, and enforcements of judgments were private."