Order without Law: How Neighbors Settle Disputes 
In Order without Law Robert C. Ellickson shows that law is far less important than is generally thought. He demonstrates that people largely govern themselves by means of informal rules-social norms-that develop without the aid of a state or other central coordinator. Integrating the latest scholarship in law, economics, sociology, game theory, and anthropology, Ellickson investigates the uncharted world within which order is successfully achieved without law.
The springboard for Ellickson's theory of norms is his close investigation of a variety of disputes arising from the damage created by escaped cattle in Shasta County, California. In "The Problem of Social Cost" --the most frequently cited article on law--economist Ronald H. Cease depicts farmers and ranchers as bargaining in the shadow of the law while resolving cattle-trespass disputes. Ellickson's field study of this problem refutes many of the behavioral assumptions that underlie Coase's vision, and will add realism to future efforts to apply economic analysis to law.
Drawing examples from a wide variety of social contexts, including whaling grounds, photocopying centers, and landlord-tenant relations, Ellickson explores the interaction between informal and legal rules and the usual domains in which these competing systems are employed. Order without Law firmly grounds its analysis in real-world events, while building a broad theory of how people cooperate to mutual advantage.
Reviews
Ellickson brilliantly explains how some many of society's actions are coordinated by informal norms that do not necessarily mirror the law. The theory of how "order without law" occurs is what this effort seeks to explain. This is sometimes explained as spontaneous ordering. How ranchers in Shasta County settle their disputes without recourse to law has broad implications and allows Ellickson to construct a theoretical framework based on a society and law perspective.
Studies that combine social anthropology with microeconomic theory are rare; ones with nontrivial findings, and broad implications, are even rarer. But this is exactly what Ellickson accomplishes. Combining theory and observation, Ellickson cogently persuades us that while formal law always operates in the background of any conflict situation, the way people actually solve their disputes often differs markedly from formal law, because of culture, transaction costs, expectations, and other subtleties not incorporated into law books.
This book is well-written, well-argued, and highly stimulating. It should be on the reading list of anyone interested in voluntary cooperation, organizational economics, cultural aspects of strategic behavior, or alternative dispute resolution.
Ellickson begins with a richly detailed case study: Boundary and cattle trespass disputes in Shasta County, California. After reviewing the Shasta County experience, Ellickson relates his findings to a theoretical framework grounded in economics and psychology. The book thus combines the best of both theoretical and empirical approaches to the study of law.
Legal scholarship is increasingly concerned with the way social norms control behavior. This is the book that started that debate. It deserves to be read by anybody who is interested in law, economics, or dispute resolution.
