They affect the market. They aren't part of it. Shoplifting might count, but insofar as much as its a CHANGE in the "cost".

The whole definition of "market" is inclusive. It certainly is influenced by outside effects. And laws are passed in response to markets, and they may have an effect, but that doesn't mean that they are *market forces*. (by definition)

Weather, doesn't respond (at least on a easily figured scale) of supply and demand - the supply is completely divorced from the demand.

(Hense irrigation, desaliniation plants, where supply/demand *are* interactive.

And that's the problem with Imric's assertation. Antitrust law isn't a part of the market, its an outside influence on it.

Having said that, some laws (such as price ceilings or floors) *can* be modelled seperately, since they don't just put a delta to supply or demand. They create an artificial boundary for the demand/supply meeting.

I'm eagerly awaiting Imric's representation of antitrust law on a classic graph.

Addison