The Self-interest of Self-regulation

This article was published in the February 1988 issue of The Freeman.

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Proponents of government regulation often overlook the many ways in which the free market itself polices producers, without the need for government involvement. Let us make a quick survey of these ways, in the hope that it will help us better to understand the market process, as well as shed further light on the wisdom of government intervention.

Almost all businessmen realize that to succeed they must please the buying public. A satisfied customer most likely will become a regular customer. A dissatisfied customer will not return, and too many dissatisfied customers will cause a business to fail. Consequently, the businessman has an interest in providing his customers with quality products and services at reasonable costs. Read more.