This market discipline is supplemented by bonding, licensing and common lawsuits. For example, unsuccessful searches and prosecutions cost time and money and add nothing to the bottom line. It pays private enforcers to avoid harming the innocent because it s just too expensive. They are acutely aware of the costs of harassing innocents on the street and of prosecuting them. These activities do not yield the financial return to the business that successful apprehensions do.
Lawsuits are more potent against private enforcers than public enforcers.
Victims of erroneous arrests and prosecutions can successfully sue private agents for damages. Nor will abusive firms receive many contracts for enforcement services. Competition and the common law promote quality protective services at prices customers are willing to pay. Government, by contrast, encourages authoritarian behavior. It retains sovereign immunity from lawsuits against a wide range of actions.