The local mafia gang would be just one of the private protection agencies with armed forces.
There is definitely a competition between them; but is violence or negotiation the most business effective way of dealing with it?
Warfare is expensive, you risk men lives and weapons aren't cheap.
If there is violence on the street or if protection money is too high, no-one would want to live there and there would be less people to sustain your army.
I think the incentives are aligned to solve disputes in a pacific way.
There is definitely a competition between them; but is violence or negotiation the most business effective way of dealing with it?
Warfare is expensive, you risk men lives and weapons aren't cheap.
If there is violence on the street or if protection money is too high, no-one would want to live there and there would be less people to sustain your army.
I think the incentives are aligned to solve disputes in a pacific way.