[malteof]

Surely you're the one getting this backwards somehow? You're talking about privatisation, but the OP discusses deregulation.

You don't mean to say that deregulation leads to more regulation, do you?

EDIT: Also, your thesis that using markets is inefficient due to more regulation, it sounds rather that you mean to say that more regulation is inefficient. How is this a failure of the market and not the state?

[mempko]

Deregulation often leads to more regulation. By allowing a whole class of actions to happen, you will find exceptions will start popping up and laws will be written to patch market failings.

If you allow X, you will find overtime it will turn into 100 different 'Allow X but' rules.

Example, Cable companies can now charge more for Netflix, then netflix lobbies and gets a new regulation 'Can charge more for traffic Except by accredited content providers'.

On and on exceptions will be lobbied and won and eventually you end up with more regulations and a larger government administering those regulations.

Net neutrality is a far more efficient regulation.