Here's a shorter explanation.

Government is a function. The state is an institution that can provide the function.

Government is not dependent on a state. It occurs with and without state involvement. It occurs out of necessity. If there is a market need for governance it will arise. 

kepford

got it, appreciate the clarifications and the reco!

That's a good question that I have never thought about. When I say government I mean the function of governing. Examples.

When I refer to the State I am using the anarchist definition.

an institution that claims a monopoly on violence over a given territory.

I am sure libertarians and anarchists would have an answer.

If you'd like to dive into the topic of the history of the State I highly recommend 

history

What Role Should Governments Play in Markets?

That's a good question that I have never thought about. When I say government I mean the function of governing. Examples.

* I govern my home
* The bitcoin rules govern bitcoin
* Consortium govern industries (privately)
* There are private governments for certain cities. 

When I refer to the State I am using the anarchist definition.

> an institution that claims a monopoly on violence over a given territory.

I am sure libertarians and anarchists would have an answer. 

If you'd like to dive into the topic of the history of the State I highly recommend [The Monopoly on Violence](https://www.amazon.com/Monopoly-Violence-Ron-Paul/dp/B08SJB28X6/ref=sr_1_1?crid=23WV1BA2HPI2&keywords=The+Monopoly+on+Violence&qid=1706131771&s=movies-tv&sprefix=the+monopoly+on+violence%2Cmovies-tv%2C134&sr=1-1) on Prime