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<blockquote data-quote="ElJefe" data-source="post: 443520" data-attributes="member: 1967">The pitfalls you mention are pitfalls everyone can and should be concerned with. In a truly free market, there would be a demand for a service that mitigates these risks. See, for instance, TrustPilot.As for cartels: how do you think they maintain cartel status? What's to stop an outsider from entering the market, offering a competitive price, and capturing market share? Cartels are only possible where barriers to entry are very, very high. Take shipping. In order to be competitive you need about a billion dollars worth of container ships to capture business. Let's say all current players form a lucrative cartel. They make a bundle. In a free market, what's to stop the CFO from resigning, going to a few large capital owners, and proposing their own shipping line at more competitive prices? The only way to effectively maintain a cartel is with government regulation. Government, therefore, is the problem. At least more often than not.</blockquote>

[QUOTE="ElJefe, post: 443520, member: 1967"] The pitfalls you mention are pitfalls everyone can and should be concerned with. In a truly free market, there would be a demand for a service that mitigates these risks. See, for instance, TrustPilot. As for cartels: how do you think they maintain cartel status? What's to stop an outsider from entering the market, offering a competitive price, and capturing market share? Cartels are only possible where barriers to entry are very, very high. Take shipping. In order to be competitive you need about a billion dollars worth of container ships to capture business. Let's say all current players form a lucrative cartel. They make a bundle. In a free market, what's to stop the CFO from resigning, going to a few large capital owners, and proposing their own shipping line at more competitive prices? The only way to effectively maintain a cartel is with government regulation. Government, therefore, is the problem. At least more often than not. [/QUOTE]

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