A problem with the free market economy is that it exists only in textbooks. A slum in Nairobi could be regarded as an ultimate free market economy. There is minimal government intervention, because the police are too scared to enter. There are no rules, so that the market forces are not distorted by external influences. But what actually happens is that the biggest and meanest are the ones who win. There is no incentive for people to be productive when the fruits of their labour will be stolen by someone else.
In fact, a free market economy can only work effectively to the benefit of all participants if the participants voluntarily submit to the rules of the game, such as: no stealing, no cheating, no misleading conduct, always describe your goods accurately, always provide your highest quality services, and always deal honestly and fairly. Any breach of these rules acts like a tax on the marketplace and penalises everyone, so that everyone ends up poorer.
If people agree voluntarily not to engage in shoplifting, then the shop owner does not need to incur high costs of security, and the goods can be sold at a lower price. If the car mechanic can be relied on to tighten the nuts on all the car’s wheels, the car owner does not have to incur the cost of car crashes caused by wheels falling off.