 The social contract has two fundamental elements: a characterization of the initial situation, called variously the “state of nature” by the modern political philosophers, the “original position” by Rawls (1971, 17–22, 118–193), or the “initial bargaining position” by Gauthier (1986, 14–16, 131–134, passim), and a characterization of the parties to the contract, particularly in terms of their rationality and motivation to come to agreement. The initial situation posits what in bargaining theory is called the “no agreement position,” the situation to which the individuals return in case of failure to make an agreement or contract. This situation may be more or less hostile, and more or less social, depending on how the theorist characterizes human life in the absence of rules of morality or justice. But crucial to all contractarian theories, there is some scarcity or motivation for competition in the initial situation and there is some potential for gains from social interaction and cooperation. 