They operated under a free market obviously (you could trade with anyone, no taxes or levies). Disputes were resolved through arbitration or informal courts. They relied on private lawmen or hired security (Pinkertons)
Another example from Argentina is the situation in Ushuaia, where so-called "electronic companies" benefit from significant tax exemptions. These companies basically assemble Samsung devices rather than engaging in full-scale production, yet they present these products as if they were manufactured in Argentina. This highlights how government policies can sometimes distort markets instead of fostering genuine competition or innovation.
A lot can be debated (various forms of IP rights, etc). But in a “Wild West” situation, is it really a free market if your neighbor can just steal your goods if he has a gun and you don’t?
Going further, you could argue there’s as lot the state can do to facilitate trade (build infrastructure etc)
The free market in the real 3D world we inhabit needs freedom to operate granted by the local people/state