The Immaculate state
Robert Nozick's conception of the immaculate state was more or less demolished by Murray Rothbard's Chapter regarding Nozick's book in The Ethics of Liberty. Of his most damaging critizisms is to point out that the most dominant police force just becomes a bully and has no legitimate claim to power over those who have not subscribed to it. Rothbard also points out there is no explanation of how a democratic process would arise.
I think I have a solution. incorperating in part the drop dead principal described by Rothbard, and a few economic observations. For one, a police force does not add anything to society, it merely attempts to keep things as they are, but in reality makes things worse off. If it were not for the criminal, and were not for the police force, we would all be better off... If they both dropped dead.
Furthermore the basics of policing are simple enough, in its infancy it does not require any special skill or talent, and may require less from a man being on a squad defending the community as a whole, than as an individual defending himself, given the stregth in numbers in each case.
Essentially there is no justification for profit in the justice system. If one man or a minority of men seek to establish a police force for the defense of the community and have the community pay for it, profiting from it. The citizens would be much more inclined to form their own company as shareholders, each contributing however much they agree too, and owning that percentage of the police force, lets say Liberty City 1787. There may even be a sense of economic proportion, so that those who have more worth being defended would pay more, and own a greater share than those who own little and have little that needs protecting. One can now raise the question of the individual who does not want to participate. and to this there are two solutions. one if for the labouror who doesn't want to pay for whatever reason, in this case it is likely that the farmer who employees him needs his services and is willing to pay the worker's part in order to secure the worker's service. In the case of the business man who does not want to pay, it is more likely that the other members of society would charge this individual a fractional amount more for their services, so that the blacksmith who doesn't volunteer to pay would be charged extra by the cloth maker, the store keeper, the brick mason etc. and that that extra money collected by each would go to pay for the blacksmith's share of production, of course this is a last resort, chances are that if he got the raw end of just a few transactions he would agree to pay his share, and that if not the town would begin doing business with a competitor who was willing to pay his share voluntarily. Furhter more, economics aside there are the social aspects to consider, what will the majority of men think of another who is not willing to contribute to the communities protection? will he not be invited to dinner parties,get togethers, will a boy whose family wont contribute to the overall protection make friends, or be rejected by girls?
And then the question to raise is would any of these measures constitute coercion? I think not. for it is just free individuals doing as they see fit.
Again realize that the cost of protection in its infancy would produce little or no cost. It would be the Night Watchman State in its truest form. this night watchmen may very well be one of the poorer citizens, whose being on duty 1 night a week is his fair share. and that the gun he uses is provided by the gun smith, and that is the gun smith's fair share of contribution.
The shareholder's then of the Liberty City policeforce would vote on the specifics of its business, and determine the specifics of the laws, the penalties, how and who would take turns as judges in the various trials, and how jurors would be elected to serve. The important thing to remember is that there is no profit involved. there is no incentive for one person to share his shares in the company to someone else. any money that might be collected through fines would only go toward costs. and therefore translate into savings at another time.
In regards to defense as well it is easy to see how the same Liberty City Defense company would also have an interest in defending themselves from outsiders who might come in to do them harm. and thus Both Justice has been established, and the common defense provided for.
I dont think it takes much imagination to see how this could evolve from the shareholder state to one a little more familiar to to what we have today. Not that there isn't a distinction between the two in regards to legitimacy.