Legislation Lays Foundations, Common Law Emerges

The balance between legislation and emergent pathways is crucial for effective social organization. Legislation serves as a blueprint, enabling large-scale cooperation and resource mobilization that cannot emerge spontaneously due to high transaction costs. Once the initial framework is established, various paths emerge naturally, which can reduce informational costs. This insight aligns with the concept of common law as a discovery process, akin to market learning. It highlights the importance of recognizing common law's evolutionary nature rather than merely viewing it as static legal structures.