All markets do work this way. Well, free markets that is. It is gov't (or rather, "unnatural") intervention that makes it seem as though some markets need help. Pretty much any serious market analyst or economist will agree that unregulated/unrestricted markets work to generally provide service at the level the most users will enjoy.

And this isn't a big suprise. Both free market enthusiasts and big gov't interventionists agree that people will do what is best for themselves. But this is why free markets work so well. Cutting prices, adding incentives, and making the customer feel happy all play into making more money, gaining more power in your share of the market, and generally being better off. In a free market, even the bad side of human nature ends up benefitting all.

It's really sad that most people don't realize this and want the gov't to play nanny. Thus far gov't intervention has only resulted in poverty, class wars, and general unrest.