Very good points, but they gave my late colleague, Lin Ostrom a fake Nobel (actually Swedish bank prize in the case of economics, with his family upset about the misuse of their name) for suggesting otherwise. Yet, as Garret suggested, in the end is all boils down to "mutual regulation, mutually agreed upon". And so lies the heart of the problem. Note:

http://www.paecon.net/PAEReview/issue102/Daneke102.pdf