You definitely need to account for enforcement, not just pretend your rules will magically be obeyed, when making your decisions. But I don’t see why the situat

You definitely need to account for enforcement, not just pretend your rules will magically be obeyed, when making your decisions. But I don’t see why the situation would be so dire that you can only choose between a free-for-all and destroying all small business. Licensing and inspections go a long way, and there are plenty of industries like that which haven’t been taken over by a few megacorps. Consider air pollution from cars, for example. It starts with the manufacturers who are required to meet certain standards. But individual owners can and do modify their cars to break the rules. Despite this, air pollution from cars has been dramatically reduced with a combination of regulating manufacturers and regulating individual car owners with emissions testing.