There’s a number of problems that can occur in markets without any coertion - e.g. principal - agent problem, or asymmetric information - that make a market les

There’s a number of problems that can occur in markets without any coertion - e.g. principal - agent problem, or asymmetric information - that make a market less efficient and thus worse for paricipants. The job of the government is to work to prevent those, even with coertion if necessary (e.g. fiduciary laws, food standards, ...). There’s a tradeoff between too few laws (reducing market participants’ confidence in the goods/services they buy) and too many laws (increasing barriers to entry and causing monopolies).