Re: AC Scenario
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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.
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They dont start using the violence until they have accumulated the capital, manpower and weapons to not need customers anymore.
I'm not sure where the percentages come from, but just as there are mergers of other corporations (5 companies own 80% of the market share in many businesses), there will be consolidation of successful defense companies. A coalition of two large ones that exceed those percentages is not at all unreasonable.
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