But if you’re not as wealthy, saving money might be more valuable to you than having a room cleaned daily, or having a really nice tv, or a great mattress, etc.
Regulation involves a group of people picking one point on a trade off curve for everyone. Branding and reputation systems allow for multiple different spots on that reputation curve.
The problem is that without regulation there is little incentive for business to be honest about the quality of service you're getting. It becomes a race to the bottom as they charge premium prices for cut-rate quality. It's hard for people to take your business elsewhere when you need a place to sleep and arrive late at night to a room that isn't what you expect. They just have to make their dispute process hard enough to keep customer money.
And if you day that's fraud, sure it is, but fraud is only something you can charge a business with because of regulation.
IMO regulation isn't perfect, but we should aim to fix it instead of throwing it out the window entirely
I think this is actually how most people end up deciding to take their business elsewhere: they give a company their business once, are let down, and decide to never patronize that business or chain again. This is why customer recommendations and reviews hold weight at all -- they help give signal before your first business interaction.
> but fraud is only something you can charge a business with because of regulation.
I don't think almost anyone is in favor of no regulation, only the prescriptive step-by-step guideline regulations. If a hotel says "we have beds!" and then they don't have beds, that's a very different regulatory case than a hotel saying "our bed are comfortable!" and then their beds are not comfortable.
And perhaps saving money might be even more valuable to you than <what you wrote above, but every "or" being progressively replaced with an "and">!
> Regulation involves a group of people picking one point on a trade off curve for everyone. Branding and reputation systems allow for multiple different spots on that reputation curve.
Yes, but that "one point on a trade off curve for everyone" works as a backstop against inevitable slide downwards. If globalization of trade and e-commerce taught us anything, reputation systems are trivially gamed, most branding exists primarily to fool people who still think it means something into spending more for less.
Even without talking about potential fraud, market competition naturally turns into race to the bottom. Regulation is what sets that bottom higher than "absolute worst possible before the market segment self-destructs".
If that isn’t regulatory capture? I don’t know what is
Force people to spend X00,000$/car to enter a market and then let ride-shares ignore that requirement that’s going to push all these companies to bankruptcy simply because the newcomers don’t have to pay interest on these loans.