Its my understanding all rules and such are outlined in contracts. And as more and more exist, they would be in competition with each other. And since the freedom minded are the ones who would moving to these cities, the contract issuing entity (who or whatever that would be) would have incentive to have the best 'rules'. If you don't like city A, check out city B. It wouldn't be so much anyone has authority over another, just contractual agreements between individuals.
Discussion
I read through the Free Private Cities white paper and found this answer to the question, which agrees with what you said:
"Allowing competing security service providers with their own rules and thus competing legal systems may appear theoretically attractive
for reasons of preventing monopolies. In practice, however, the effort and inconvenience involved (transaction costs) are probably too high. It would take years for rules to develop in the market on how to resolve collisions between the various providers and legal systems. In practice, the owners of the strongest security service could do what they want.
"Once the model of Free Private Cities has proven itself profitable, then competitors will inevitably appear on the scene. This is the best guarantee for the residents that the respective Operators will not abuse their position of power. Apart from that, the right of every contract citizen to self-defence and the corresponding support of third parties against attacks remain unaffected or expressly guaranteed by contract."
Forgot I had this sitting in my inbox.
https://underthrow.substack.com/p/when-governments-compete-you-win
Thanks, I'm going to read this now. Max Borders looks like an interesting author.
By the way, I see you use Substack, as do I. I wish there was a Nostr client that was a Substack clone. I think nostr:nprofile1qqs04xzt6ldm9qhs0ctw0t58kf4z57umjzmjg6jywu0seadwtqqc75spzpmhxue69uhnzdps9enrw73wd9hszynhwden5te0wp6hyurvv4cxzeewv4eszynhwden5te0wfjkccte9enrw73wd9hsxv8qkt's Highlighter app comes closest, but I like the read-aloud function Substack has (which I have only also seen on Snort), and how you can subscribe.