Reinventing The Bazaar. Study Notes by Zhipeng Yan. – 1 -. Reinventing The Bazaar – A Natural History of Markets. John McMillian. Chapter 1 The Only Natural. Reinventing the Bazaar has ratings and 47 reviews. Kafka said: My review is divided into (two) parts: Abstract and Reaction (e/ part words lo. With information “poor, scarce, maldistributed and inefficiently communicated, it is buyer beware,” says John McMillan, an economics professor.

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Reinventing the Bazaar: A Natural History of Markets by John McMillan

The agents are acting in their own self-interest in jhn scenario in which their interests conflict with those of their clients. Two cheers are enough. No trivia or quizzes yet. The author combines elements of ethnography with economic analysis.

Reinventing the Bazaar

The five elements required for markets to run smoothly are: Reinventing the Bazaar is at its strongest when covering deregulation and privatization. Finally, externalities like pollution or resource depletion need to be collectively-enforced, regulated top-down through appropriately-set taxes or quotas, or through privatization Marshall Islands fisheries, This is usually the reference for how market failure is defined, but it also has the underlying assumption that markets are supposed to address certain things.

Markets are not evil – they merely execute as designed, even if their inherent design is not apparent to us until we experience the outcome usually as a negative. In fact, I think it was the book with the strongest case yet for markets and efficiency. I wish that McMillan were still alive today. That probably has something to do with my Libertarian views of a Utopia than anything The book makes solid ground as a layman’s guide to Economics.


In fact, markets are the most effective means we have of improving people’s well-being. Price-fixing also cuts into productivity by preventing the price system from doing its job of allocating resources. Still, he seems to have considered a wide range of viewpoints, and comes to some interesting conclusions about when strong property rights are effective and when they are not.

The author debunks extremist views on the right and left concerning the wonders or horrors of the “free market”, suggesting instead a sweet spot in which government regulation plays a limited but critically important role in market economies. Then the market failures such as uncertainty in investment, principle-agent problem in a public sector and the good or bad externalities in industrial sectors or in public transportation.

Constructive government actions are needed Pretty good introductory book on the pros and cons of market behavior and it provides a variety of real life examples to understand how markets operate in a variety of situations.

May 19, Edrees rated it really liked it. A great description of the indispensabi This is the best book I’ve read about market systems. There’s clearly a role for government in the economy. Dec 26, J. Using a plethora of examples, McMillans describes the role of information flows, trust, competition, property rights and externalities as key in the functioning of a market.

It can also mean skimping on labor costs i. McMillan’s main point is that markets are tools; and like all tools, they can have better and poorer designs, and can be used well or less well to achieve their end. Most of the examples he brings up are very interesting, but where this book ultimately falters is in its ability to define economic terms for those who have never taken an economics class.


The fervent proponents of laissez-faire, who esteem market, advocate a system that would trigger their collapse. I would add that this is good encouragement to look a little closer at the economic merits of public policy proposals beyond what sponsoring politicians claim they are. Patents and intellectual property rights are an example of imperfect solutions maintained by the government at cost to users. And there are evaluation costs, arising from the difficulties buyers have in assessing quality.

Oct 23, Brent rated it really liked it Shelves: In fact, there is ample validation of markets helping poor people throughout the book e.

REINVENTING THE BAZAAR: The Natural History of Markets

But as every technology, markets have limits and need to be carefully crafted in order to be efficient. Markets and government have an uneasy relationship.

When You Work for Yourself. For them, the abolition of media boundaries is a trumpet call to expansion:

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