But market forces apply. Bumpy Johnson could supply better Heroin than others, so he created a "brand" and took control of most of the market (in New York anyways) Sub par grade goods require a captive market. And that requires monopolies, or cartels. That happens After somebody "wins" the market, and can close out competitors. Through diplomacy, or other means. Even purity laws are a barrier to free trade, we use them because they benefit society as a whole. There was a time when they did not exist. After it became a problem, government stepped in.