Reinventing the Bazaar: A Natural History of Markets
by John McMillan
W. W. Norton & Company; Reprint edition (November 2003)

Summary

.A very good and detailed description of why markets exist, how they work and what they are good for. Markets are one of the primary ways people judge, transfer and create value. There are good markets and bad ones, but, no matter what, they are ubiquitous.

McMillan describes the requirements for a well functioning market:

These are supported by extensive examples and analysis.

Rating and opinion

.Markets and market-based mechanisms have been getting a lot of attention recently. This book does a very good job of capturing the essential dynamics of market mechanisms and makes a strong case for using these mechanisms in the right circumstances.

One of the best things about McMillan's book is, however, his description of how markets can go wrong. This acts as a counterbalance to all of the 'free market' enthusiasts. Markets, as McMillan make clear, must be regulated and controlled, either informally or formally, in order to achieve the five attributes listed above. Most free-market enthusiasts don't consider these things when advocating for deregulation.

Related

Read as Well: The Wisdom of Crowds, The Keystone Advantage

Read Instead: none

Footprint

388 pages
Time to Read: 3 nights
Content Density: 30% (good)
Interest Factor: High