Earlier quoted context omitted.
However, in reality, barbers (at least in the US) are not dangerous places. If a barber starts acting in a way that makes their customers come down with infections, customers will take their business to the other barber down the street. If this new barber does the same, you will simply go to the next barber. In this scenario, the first barber to treat their customers well (in a manner that does not pass on infections…
That's a beautiful theory that completely falls apart when cause and effect between bad behaviour and consequences is not immediately clear to the person buying the service. Which, in the real world, is the case with almost everything. Vendors don't tend to cheat or cut corners or perform malfeasance on shit that's easy to spot . Worse yet, the customer often can't tell the difference between malfeasance and bad luck…
Why is it that restaurants, barbers, car washes, and other small business industries have thrived for so long despite minimal regulation?
One reason is the high competition. If you've ever run a restaurant, you know the importance of making customers happy. Because customers have so many other options to choose from. They can easily take their business elsewhere. So you have to perform.