The State solution uses coercion to make the individual consequences reflect the collective consequences. If an individual tries to free ride (say by not paying taxes) the State punishes that individual by putting him in gaol.

However, that only works as well as the State can detect infringments and enforce them.

The classic State-like solution to the original Prisoners Dilemma is that both criminals should join a gang which punishes all informers by killing them horribly.

That way neither criminal dares to inform, and they get the optimal outcome.
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"Everything is vague to a degree you do not realize till you have tried to make it precise." -- Bertrand Russell
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