This manner of speaking may be confusing, but it underscores that assurance and privacy are just other things that consumers demand. Just as the demand for watches creates opportunities for entrepreneurs to profit by providing watches, the demand for assurance and privacy creates opportunities for entrepreneurs to profit by providing assurance and privacy. There is no more reason for government to regulate the production of those things than there is for it to regulate the production of watches. Researchers have explored how producers provide assurance of quality and safety. The central mechanism is reputation, the general opinion of whether one's promises of quality and safety are trustworthy.
Producers build reputation by a variety of means.
Firms seek repeat dealings so that satisfied customers gain confidence and return for more purchases. If the producer were to cheat customers, he would lose future purchases not only by that customer but also by others informed of the dissatisfying experience. Firms develop an array of services brought under the umbrella of brand names, logos, and trademarks, using their reputation to assure quality and safety. Retailers build bridges of trust by becoming regular dealers between producers and consumers. Rite Aid and Safeway have a continuing relationship with pharmaceutical suppliers on one side and consumers on the other.