Flea markets and farmers' markets are better approximations of true free markets. Why is this?
A flea market has many buyers and sellers, although some sellers might think there are not enough buyers.
Buyers and sellers are free to enter and leave the flea market. Of course, sellers may have to apply for limited space and it will take a bit of time to pack up to leave the flea market.
Buyers and sellers have all the information they need to make a decision to buy or sell. The buyers can pick up the goods and even give them a small test. Sellers accepting only cash generally can assume the bills are good.
There are few externalities from a flea market. There could be lots of trash to be picked up. Some products sold may be defective and injure somebody.
Can you think of any other economic activity that even gets close to the free market standard set by flea markets and farmers' markets?
See also http://en.wikipedia.org/wiki/Free_market
