original_query: What is the compensation mechanism mentioned in the text?
query: What is the compensation mechanism mentioned in Robert Nozick's Anarchy, State, and Utopia?
answer: Nozick's compensation mechanism addresses disadvantages suffered by non-members of a protective agency due to their inability to enforce their rights.  It requires the agency to raise the non-member's position to an indifference curve they would occupy without the prohibition, equal to the difference between their original position and this curve.  In the context of state formation, compensation is given to those disadvantaged by the state's monopoly on the use of force, ensuring that those who cannot afford the agency's services are still protected.