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You talk about the freedom to sign another deal and pay less. I have freedom to change banks if they charge high fees, but they all charge high fees. Same for insurance companies (And this is not counting that they do everything they can not to repay you when you need them). I have the freedom to get gas at another station but they all charge the same price. When I talked about the difficulty of competing with Wal-Mart I got replied that I should work for them instead of trying to compete. I don't see much freedom in the so called free-market.
As for market efficiency, I have worked for a large company and saw a lot of inefficiency in it. I know people who work in large businesses and they also see a lot of inneficiencies in them. These businesses are still working and we pay more for some things because of these ineffiencies. Businesses are still run by people and people are not perfect. Market rules don't influence businesses much in efficiency. When a business becomes large enough, it has the power to crush efficient competition. Just think about Linux and Microsoft. Linux is virtually free but Microsoft is so predominant that the cheaper and probably more efficient Linux is still a rarity on home computers.
The current products market is not real. Most of our products are made in "Communist" China (talk about irony here). Wich means that it would be much like having our products made by prisoners. How can businesses compete with a virtual slave force? We pay much less for products than what they are really worth. How can we have a fair market when such an imbalance exists? Market forces need to be equal for all or there can be no competition and we end up with monopolies wich are much like inefficient governments.
I don't see how you can pretend that the market forces would be better than a government. In your world there seems to be so much freedom and choices, but I don't see them in the businesses I deal with. I would like you to explain to me how this could be.