The biggest media story of the moment is that Bill O’Reilly has been dropped by Fox News as a result of multiple credible sexual harassment allegations. The most intriguing part of this story is why Fox forced O’Reilly out. It did not ease him out because of low ratings or because he admitted to wrongdoing. In fact, O’Reilly railed against the “unfounded claims” lodged against him. Nor did anyone invoke the laws against employment discrimination. No, the reason for his departure was the power of market forces.

In light of the sketchy revelations, over 50 advertisers pulled their spots from O’Reilly’s show, exposing Fox to the risk of financial losses and a reputational drubbing. There’s a lesson here for proponents of the administrative state: The best way to deal with thorny issues like sexual harassment is by following due process and allowing market forces to take their course. We do not need massive federal enforcement of the civil rights laws to curb aggressive and abusive behavior.

Reputation is a firm’s most precious asset. Each activity it engages in can improve its profile with some group, but not with others. O’Reilly exploited that division in public sentiment by rallying his base and baiting his adversaries. But once he crossed the line, the collective reputational response proved brutal. It took its toll without litigation. For a time, the target might stem the tide of bad publicity sparked by claims of sexual harassment. But in O’Reilly’s case, the accumulation of evidence of decidedly uneven quality did its deadly work. The Fox brand was hurt, and so O’Reilly was toast.