Places without those problems work like the rest of the free market: those trying to sell the cheapest crappiest stuff to make the most profit end up losing out to those who can sell better stuff at the same price.
In a utopia, yes.
In the real world, you just need to bribe the local politicians.
Again, profit is the problem.
In a free market perfect competition environment, profit is usually close to 0, with the most efficient producer who can make the best product winning the race.
Utopia, utopia, utopia.
RBE deals with the real world, not utopian fantasies.
So, in places like closed or private communities wo hire their own companies, or toll roads not subject to using government contracted workers (i.e. those working with a free market) usally have much better quality roads ad sidewalks for not much more money.
...and they could provide more services for free, but they don't. Why?
Cause people need to work to sustain this system, it matters not if what they do is useful.
And anyway, in the real world, a huge corporation will come and wipe out the local companies.
Free market = utopian fantasy
RBE = how to deal with real world problems