I pay $349/mo to Uncle Enzo's Thing, who kidnaps the CEO of Blackwater, cuts off his ear, and douses him in gasoline. My neighbor is a lifetime OG in the local Compton Crips franchise, and the worldwide org takes out 80% of the board of Triple Canopy with simultaneous drive-by shootings. Sachs-Chase-Salomon-ExxonMobil-GE-AT&T-Shinra drops a nuke on all of us. The Lysistrata Society shorts contraceptive stocks. Hydra-TransUnion-NewsCorp merges with SPECTRE-Facebook-Experian and changes the combined corporate motto to "Evil: It Makes Good Money." Real estate prices for secret volcano lairs rise steeply. The King of Tonga sends two war canoes up the Potomac and decisively conquers a barbecue stand in Northern Virginia, forcing it to put pineapple on its pork sandwiches. Cats and dogs, living together--mass hysteria! Chaos!
They say an armed society is a polite society. Mutually assured destruction is a whole lot scarier when you have competitors waiting in the wings to snatch up your dissatisfied customers that want to switch providers because jaw-jaw costs them much less than war-war.
As mentioned in a cousin post, the assumptions embedded in the hypothetical scenarios make the imagined outcomes useless, just like that novice physics student neglecting wind resistance.
Their families pay $1100/mo to Triple Canopy, which eventually wins its protracted firefight with Blackwater, securing my capture.
The market takes notice. Soon the only protection services in demand are those provided by the company which can wield the most force.
And we're back at government.