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Microsoft is monopolistic because of the network effect, primarily. The network effect is not necessarily a bad thing though so its hard to decide how to solve this problem or whether it is even a problem. I suspect that IBM is monopolistic primarily due to excessive IP laws (again, government sanction as ever). The rest of what your saying looks like the standard "but what if it were a Good Government?!" one. I as much as anyone favor incremental improvement to the system, and I'm with you here. I would take a better government over the one we currently have in America any day, but I am skeptical of the efficacy of any government in accomplishing what you mean for it to accomplish.
 Originally Posted by CoccoBill
I think there absolutely would be, probably ones more efficient than we have today. Though, they would only be available to those who could afford them, I'm afraid.
The rich who could afford law enforcement also would value the peace of mind that comes with living in a safe, law abiding area. I suspect that ingenuity from the private sector would find a way to solve the free rider problem in a way that would provide all people within an area with a basic amount of security and justice.
I'm not copping out when I say that its simply very hard to imagine what private police and dispute resolution would look like; the free market comes up with new things all that time that we could scarcely have imagined. No one 30 years ago would have thought we would be buying all our shit on amazon having access to all this amazing stuff on the internet. When governments monopolize dispute resolution, criminal justice, education, and all these other things, they cause us as a society to turn off our imaginations as to what different faces all these institutions could have in the event of innovation. Without competitors, these institutions are unlikely to innovate at all, or do so extremely slowly. This isn't because the government is bad, its just because the incentive structure isn't there for innovation to occur.
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