Nirvana fallacy

The Nirvana fallacy is the logical error of comparing the performance of actual private firms with that of hypothetically perfect government models.

Commentators and lawmakers often forget that it is very difficult for third parties to identify what is socially optimal even in concrete examples, much less when designing general laws. Thus, even if we see action that is socially detrimental, such as what today are considered antitrust violations, laws cannot necessarily be constructed and enforced in ways that will alleviate the socially detrimental behavior without imposing other, perhaps higher, social costs.