False. The free market does not assume perfectly rational actors. In fact the reason that free markets have out performed managed markets in every instance over the past 3,000 years is because free markets are ideal at operating in low information and slow information environments. The best centrally managed market will still under perform compared to any variation of a free market.
That has been proven over and over again.
[–] MRPockets ago
The free market doesn't necessarily deal with the immediate; it looks at the long term primarily. Yes, you can have idiots who pop-up, but a truly free market (which we most certainly don't have) would reject those idiots. The case of the bad USB-C cables that is currently making news is actually a decent example; bad actors are in the market, people realize they are bad actors, and those bad actors will soon go away because people will stop buying from them. That doesn't mean that there will be no more bad USB-C cables, but the people selling them right now will lose credibility, people will find the good actors, and new bad actors will eventually suffer the same treatment.