Daniel, it looks to me like your points are all based on a misunderstanding of market freedom, so i hope you’ll forgive me not addressing your points. The reason I commented in the first place is that your logic appears to lead to a justification of what looks to me something like “black market” economics.

Google provides many sources of definitions of captive market. They all say pretty much the same thing. Wikipedia I chose because the wordings there are a classic demo of free market forces at work. The market doesn’t always get things right, but in this case, if the market does not correctly define itself, then what does?