Bauer denied the existence of disparities in bargaining power between capital and labor and the exploitation of workers. Only the absence of "independent competing alternatives" allowed exploitation in his framework: "Even illiterate poor workers will be paid what they are worth, if employers can obtain their services only by competing for them" (Bauer 1958b, 8). Since wage regulation stifled growth and limited employment, employers were denied opportunities to compete and were more likely to be forced to become exploitative (Bauer 1958b, 9).

Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, loc. 1325