I find it weird that you think “regulation” is needed to stop people from committing crimes. That’s already illegal! Anyway your example is silly because no one

I find it weird that you think “regulation” is needed to stop people from committing crimes. That’s already illegal! Anyway your example is silly because no one would buy water from a producer that poisons it. The potential profit to doctors is low as well. At least you could have chosen something more realistic. Water being regulated is probably the biggest cause of shortages in the US West. Prices are set too low (especially for certain buyers) and it causes overconsumption. It’s a classic tragedy of the commons that public management has failed to resolve.