I agree with what you're saying for the most part. I think, though, that people want to get along and social pressure can work for a lot of these situations. Regulations do not always work in your favor, though, and do not always protect people.

For example, where I live in Cleveland, there used to be a rule that policeman (and I think most civil servants) had to live inside the city limits to work there. Once they removed the regulation, these workers sold their homes and left. The property value has dropped considerably as a result.