[godtoldmetodoit]

I saw this effect directly in Eve Online. In the early days there was a lot of experimenting with how exactly to organize these large groups of players. Some groups tried democracy of some flavor or another, others dictatorship. Dictatorship easily won out in the end.

Most "dictators" in Eve actually end up being pretty good at their job, because it is a cutthroat market, and the most precious currency is players willing to fly for you and they can easily leave to join another group should you piss them off and not take care of them.

[MichaelZuo]

Ironically enough considering the dispositions of the people who EVE was originally marketed to.

[MountainHoliday]

These systems only work with freedom of movement. You get global rules and law that'll remove any correcting mechanism