Societies as systems of rights

Markets are always part of a larger social context, entwined in a social system with other endogenous institutions. The sum of these institutions and the self-interested, maximizing individuals who interact within them may, in fact, be much of what constitutes a society. There is at least one thing more. A society is also a system of group defined and defended “rights.” These rights in turn define who may do what, with what, to whom, when, and why. There are several things to note about this definition. The use of the word “may” implies some kind of permission. As every parent knows, things are done without permission, but without an established right there is the expectation of some external punishment. The definition speaks of control over resources, of purpose, and of action. In the language of Chapter 2, it directly implies both event power and agenda power.