Nirvana fallacy

The logical error of comparing the performance of actual private firms with that of a hypothetically perfect government models. Judges and commentators forget that it is very difficult for third parties to identify what is socially optimal. Thus, even if we see action that is socially detrimental, such as antitrust violations, laws cannot necessarily be constructed and enforced in ways that will alleviate the socially detrimental behavior without imposing other social costs.