When the hapless Jar Jar Binks crosses the wicked Sebulba, Anakin steps in to mediate. Sebulba threatens to kill Anakin who seems unimpressed. Why? Well, some property rights are protected vigorously on Tatooine.
- Property rights provide incentives for the owners to protect their property. Owners reap the reward from using property efficiently, and they bear the costs of using their property inefficiently.
- Even though slavery is supposed to be illegal (we hear this from Padme at another point in the movie), Tatooine is far enough from the rest of the galaxy that many of the rules are not enforced. Slaves are valuable property, and owners won’t let harm come to their property without being compensated.
- Anakin isn’t worried about Sebulba’s threats. If Sebulba were to harm Anakin, he would have to compensate Anakin’s owner, and Sebulba definitely doesn’t want to do that.