I have explored it and came to the conclusion that it cannot be correct. In the absence of government intervention, companies are free to basically form their o

I have explored it and came to the conclusion that it cannot be correct. In the absence of government intervention, companies are free to basically form their own government. They would control labour and resources, hence power, and so create the rules. This is exactly equivalent to large companies lobbying government in their favour, except you cut out the middle man. Look at the City of London (not to be confused with city London that surrounds it https://en.wikipedia.org/wiki/City_of_london#Elections https://en.wikipedia.org/wiki/City_of_london#Elections ) for example. In the square mile, businesses put forward representatives and vote on them, who become aldermen. This is the kind of arrangement you encourage without government intervention. Now you might think "the City of London is pretty successful" - and you'd be right it is a lovely tourist spot, but it is also a hive of massive, global corporations with rents that are totally unaffordable for the majority of people working in the area and office space that is prohibitively expensive for anyone looking to start-up in the area. Trust me, nobody is pulling themselves up by their bootstraps in the City - it's all about climbing greasy poles.