From: Rafal Smigrodzki (rafal@smigrodzki.org)
Date: Mon Mar 24 2003 - 21:03:41 MST
On Mon, 2003-03-24 at 21:40, Emlyn O'regan wrote:
>
> I still don't understand how all the smaller insurers wouldn't get gobbled
> up into a big monopoly, which then has a monopoly on violence and can decide
> to become a defacto government. How do you protect against this?
>
### An insurance company has lower market entry costs than in the case
of making a state (where you need to hack out a territory from other
states by force, keep the people from fleeing). This should be
sufficient to assure competition, especially since most people would
switch to new providers long before the old one could consolidate its
position. At least as long as there would be no major concentration of
land held by one insurance agency, since this would make competition
impossible.
Rafal
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