[FooSH]

I agree war is very expensive, and that most security companies understand this. Would this not lead to appeasement of overly aggressive companies? Once a bigger security company decides it wants your territory, it can take you to the cleaners in so many ways without firing a shot, (customer mis-information, threats, bribes, vandalism, lawsuits etc.) Eventually you have to give in or get stronger allies and go to war, the former option being much cheaper with less chance of physical injury / death.

I'm unfamiliar with Friedman's points there, do you have a link or a summary? I always thought economies of scale = a good thing.