In fact, the policy conclusion should be that we should allow the greatest scope to come to enforceable co-operative agreements with others (in this respect, one thinks of the huge networks of co-operation that existed in private stock exchanges or of the way in which football is organised, but there many other examples). The market provides a great forum for co-operation. Competition is the process by which the best forms of co-operation are discovered and are copied.
Now, of course, co-operation in the market may not always produce the theoretically optimal result. But, the market is the forum where people will solve these problems most effectively. As von Mises said in Human Action, markets are places where people are ‘competing in co-operation and co-operating in competition’ in order that people can find the position from which they can best serve society. The idea that regulators can centralise all the necessary knowledge and act purely in the public interest (and not be captured by outside interests) suggests that the alternative of government regulation to promote the optimal outcomes is not promising.