Let's say you have a neighbor in a anarchist society. The homes in this area are built not just for comfort but protection as well. But you notice that your neighbor recently bought some disturbing things such as weaponry of some sort. Since there is no official police or anything to keep the protection and law in hand, there is no absolute way for you to ensure your safety, than to buy your own weaponry (clearly for defense). Yet using Frank's example of suddenly you have the weaponry and your neighbor has less than you but he/she has toasters. And for some reason your demand for his/her toasters sky rocket. Even though you already have a toaster.
My point i'm trying to make is that the first example I believe is more plausible than the second. For the same reason why I don't buy more groceries than my roomates because i'm trying to flaunt my grocery spending in food. I do it because I would like my grocery inventory to last substantially longer so I don't have to visit wal-mart more often. Although there is one more part in this chapter that I would like to quickly discuss as well. That is the topic of Unions.
Frank states in the last bit of another example that the reason why we need government is to impose regulations to companies making the work place safer while libertarians and other invisible hand enthusiasts prefer it to be an open market and letting the risk be involved with the pay. I think he may be skipping over the fact that many Unions pop up in workplaces that especially need safety and those Unions don't run to their legislators but picket for those fringe benefits. So we don't need government to regulate every job we do because we would prefer to it be riskier for a higher wage, many Unions already achieved higher wages and the fringe benefits they need/want.