Let's break this up bit by bit
So in AnCapistan, instead of a Public Works Department, you have customer service? Microsoft and Cisco would own the world, and you want their customer support to take the place of government?
Microsoft would compete with Google and Linux, like they do now. Cisco would have to either continue to provide best service possible, or start competing with distributed mesh networking. For every monopoly, an upstart can and does arise to take them down when people get too annoyed with them.
What's the difference between a monolithic state and a megacorporation? I'm failing to see any functional difference between the American Democratic Republic and AnCapistan (both at their theoretical best.) It's what happens when they're not at their best that I have a beef with. In America, the system is correctable, and even massive abuses have ways of being mitigated, reversed, or fixed.
In one, you're fighting for votes. In the other, you're fighting for revenue. Actually, at this point, it seems in both we're fighting for revenue. So, yes, both will have corruption. Though like with monopolies, hopefully better systems will pop up once people get frustrated enough.
I think a core set of laws is necessary for regulating commerce, and unifying military, national, and international infrastructure. Corruption isn't going to go away. If anything, it will get worse, because whistleblowing suddenly become a matter of corporate security.
No different from government corruption. Enter Wikileaks...
You have a silly little game of socioeconomic brinksmanship with private armies involved. That can't possibly end well. That essentially means whoever can snap up the most resources the fastest wins.
At this point, the most valuable resource is human intelligence. Engineers, scientists, programmers, etc. If you snap up those resources and treat them well, what's the problem? If you abuse them, that resource can leave (brain drain).
In AnCapistan, I guarantee I'm going to destroy you before you have a chance to hurt me. I'm not going to wait for you to make the first move, because maximizing my long term well being means establishing and enforcing whatever set of rules I deem optimal.
Unless your goal is to make a lot of money from a lot of people, which means you have to do what you can to make as many people at least minimally satisfied. Only problem is, if you have power, you can print and/or control the money. I believe Bitcoin just solved that problem. If you mean the above in business competition sense, you'd either buy the competitor, or try to out-compete. And if you screw up, small startup (Google) will kick your ass.
I'm going to seize all available resources, and you will have no recourse except to get out of Dodge, because I'm not going to acknowledge your attempts to bring to me to court at some McJudge outlet.
See above for resources. Also, customers vote with their dollars. If you're an ass and are legally untrustworthy, those involved with you from a business sense, those being both the end-customers buying your products products and your suppliers selling you materials, will both start to dump you.
I'm going to treat with like minded individuals, those who are able to capitalize on the sudden lack of a central legal system, and we're going to be benevolent dictators. We're going to get away with it because our mercenaries are paid, trained, equipped, and indoctrinated better than your freedom fighters.
Your mercenaries cost you money, and can't force people to buy stuff from you. People have the money you want...
An empire will arise out of the ashes of AnCapistan, because humans are stupid, greedy, evil bastards.
AnCapistan will likely be a rather wild place, no doubt. But those who are stupid will have no power, those who are bastards will not be able to compete in a system where reputation counts, and those who are greedy will keep looking for ways to exchange their goods/services for our money
Why not impose a central state designed to mitigate the greedy, evil tendencies and maximize freedoms? A Democractic Republic seems like a pretty good system to me.
Mitigating tendencies by force still gets rid of freedoms. They may be freedoms to be a greedy bastard, but it's still a freedom that no longer exists.
I'm kind of somewhat of a liberal Dem, and also think that a Democratic Republic is a pretty good system, but this AnCap and Libertarian thing still sounds neat to me (I'd love to see it in action, just as I'd love to see deflationary Bitcoin economy in action).