Looking at my Competitive Regulatory Agencies, you understand a business would be required to become regulated by private agencies all contending for your business. They would charge each business for the service they render. For example, a restaurant would need to be regulated by food safety agencies and would charge you for those services. Businesses would need to balance so that all strong ratings listed on their door come from strong regulations that are well monitored and lower ratings are from laxer regulations that are not enforced as well.
It is also vital for a business to directly link services provided by the government to that service. Those services of inspections and regulations by the state are often seen by a business to be obstacles and are often counterproductive to good business. In CRAs, businesses would look for agencies which eliminate counterproductive regulations and are fair and cost efficient in their services.
Politicians have been known to alter regulations to harm their political enemies or help their friends. This can easily lead to corruption and often the appearance of favoritism. There are some that make an art form out of this to keep their campaign donations flowing. They take bribes, some illegal such as direct personal payment for a vote or a vacation at the business’s expense.
Knowledge and Corruption