State contract enforcement mainly lowers transaction costs of policing. [causal]
Thus our approach suggests that the importance of the role of the state enforcement of contracts was not that it provided a means of enforcing contracts where one previously did not exist. Rather, it was to reduce the transaction costs of policing exchange.
Builds on: "State enforcement replaced merchant-run reputation systems in early modern Europe."
PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE O…, loc. 176