In an ancap utopia you mean? Point is that if you control the courts and police then whatever you do can be declared legal. And you can make money not necessarily lose money buying a controlling stake in all the courts and even renting them AirBNB style to your rich buddies. There are no other institutions left, that have any teeth, you bought all the major ones. If they come after you, your police will just rebuff them.

The point is people band together to create larger and more powerful organizations. But it still doesn’t solve all instances just pushes the corruption to a higher level.