People absolute will create a government, however the nature of that government may not be similar to current incarnations. It might take the form of corporate rules, terms & conditions, or the form of a commune, or the form of a gang leader. It depends on the culture of the people. In the 17th century, a majority of people believed a monarch was necessary, and so they pledged allegiance to a monarch. In the 20th century, people rejected monarchs, seeing them as unnecessary, and demanded democracies. Even independent territories like Alaska, Hawaii, and Arizona chose to join a democracy. In the future as governments go bankrupt (Greece, Venezuela), or lose control of their lands (Mexico, Iraq, Syria), people may demand a different form of government, or none at all. Those who try to forcibly impose a new government may be met with lethal force by the entire population.
I predict in poor countries that cannot afford security, gang members and warlords will rise to power, and use their force to extort protection money from the population. Assuming they do not have the population's cooperation or willing allegiance, they are likely to be limited in size by approximately the area that IS, Afghanistan warlords, or Mexican cartels control.
In rich countries with a tradition of private property rights and peaceful conflict resolution however, they will hire security to protect their life and property ($200/yr). These security agencies will no doubt gain a bit of power and set guidelines and rules for their customers to live by. They won't obtain a monopoly however, as the efficiency of security is inversely proportional to the area patrolled. So the nature of government may indeed change.