If we look at history, we notice that the STATE is frequently, perhaps, most frequently, led by single rulers, whether by election, coup or revolution. The number of states freely engaged-in and regularly transferring senior powers peacefully is historically quite small. This regularity is independent of size.  Some observations follow from the notion of Rulership in both States and Firms

• Since mortality in leadership is absolute, there are underlying struggles (competition, if you will) in the “next in line” race which does promote alliances within leadership factions where rule is said to be by party or “faction.”
• What about economic organization of the political entity? Two levels of organization need to be visualized. The individual firm and the market consisting of several firms. Within the firm, there is some time dependence… that is the firm may start as the outgrowth of a single idea and/or sole entrepreneur or it can be a collective undertaking of several a single idea and/or sole entrepreneur or it can be a collective undertaking of several initiating partners. The partners may collectively bring together a variety of skill sets that differ such as engineering and finance or marketing.
• Some firms grow out of a single product or service or a product innovation or a method of large-scale production that brings with it economies of scale and benefits to profits from such scale economies. Overtime, however, competitors may arrive in a market of many firms.
• Overtime, if for no other reason, consumer tastes may change, and more innovations will almost certainly arise. Monopoly always brings competitors. The ripe smell of profit capture is a strong stimulus to a new cook. Without the power of legal exclusion, the monopolist might desire the profits of a quiet life, but is never permanently successful in such a search unless he can convince the Ruler to alter the rules the first firm in the game. Most firms become multiproduct purveyors either because of “jointness” in production or delivery… creating an analogous history to the formation of new States and alliances in the political world. The collection of such firms in a broader concept of a “product” nearly aways becomes a more powerful and resourceful advocate on behalf of its members to altering the rules in its favor.

Studies of State evolution can bring useful similarities to the analysis of the economics of the firm and market evolution. Political leadership is also subject to mortality and evolution.     “Le meme chose…”