[WordWhiz]

I have a feeling that using guns to increase market share would backfire. Unlike with nation-states, customers of security agencies could leave easily the moment their ostensible protectors started using violence or becoming too oppressive. And of course, it's very expensive. If A and B security agencies go to war, it is C, D, and E who win, regardless of the outcome.

Finally, it seems likely that the number of defense agencies would greatly surpass the number of current nation states. There's no way to say for sure on this, but Friedman points out the inefficiency problems that dog large urban police departments. It's highly doubtful that an anarcho-capitalist society would ever reach a point where one agency controlled 40% of the world's military might, or where two agencies served about 37% of the world's population.