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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To the Best Bidder. A pure free-market system would have allowed private firms to collapse; instead reluctant tax-payers now find themselves majority share-holders in firms that are ‘too big to be allowed to fail’.

Reinventing the Bazaar: A Natural History of Markets – John McMillan – Google Books

The example of the dysfunctional EPA auction he gives – and how it gets fixed by private actors in a secondary market – seem to slip right by him – even as he writes about them in his own book. Price-fixing also cuts into productivity by preventing the price system from doing its job of allocating resources.

Sometimes it also takes well-designed fiscal policies. Or it can mean production of lower quality goods — freer information is not a guarantee of quality, as can be apparent by comparing many American products with say, Japanese or German electronics, auto, home appliances, etc — Demming was a guru in Japan but unfortunately ignored when he came home to the Bazaxr.

This is a well written pop-economics books that takes as its main topic the benefits that markets bring and the limits of markets left to themselves. Books of the Week. From the wild swings of the stock market to the online auctions of eBay to the unexpected twists of the world’s post-Communist economies, markets have suddenly become quite visible.


Markets need support from a set of rules, customs, and institutions that set up mechanisms ensuring full benefits are delivered Dec 23, Jerrod thr it liked it Shelves: My academic “shit-talking” is due to the fact that this paper was for school, where “critical thinking” is encouraged. Thus, markets are resilient and can even form in refugee camps, prisons, and under Communist regimes There can be externalities that aren’t always so easily regulatable as his treatment on cap-and-trade may make it seem e.

These facts along with many, many others can be found in this fascinating book. Jun 20, Kafka rated it really liked it Shelves: The Embarrassment of a Patent.

Top-down price-setting without the use of market forces, e. As it is, the book feels scattered, and McMillan’s tone is by turns condescending and frustratingly abstruse.

Thus, the reader is left to sort out what it all means. A very easy read, the author a Professor of Business at Stanford provides a series of interesting vignettes from around the world that demonstrate th Economics is not my strong point, but I really enjoyed this balanced and non-ideological book on markets.

Thus, the internet age has facilitated trade for both sides e. There are no discussion topics on this book yet. When someone wants to get just a basic useful knowledge of economics it’s not always appropriate to read textbooks. Instead, the book is very much a Certainly markets can be under-regulated, but stepping down from ideal theorizing and noting that government failure is probably more widespread than market failure and that the incentives for government actors is almost always to intervene, a government bureaucracy that takes less intervention as its default principle is probably better on average.

Search costs weaken competition, e. It is the worst form of economy, except for all the others that have been tried from time to time.

REINVENTING THE BAZAAR: The Natural History of Markets

Far from being a radical to either side, McMillan insists on the usefulness and necessity of markets while consis McMillan provides a useful and easy-to-read overview over current thinking on markets as Joseph Stiglitz is quoted, “There could be no better guide to the modern view of markets than John McMillan’s new book. He describes how markets can sometimes be reworked to address injustices and solve nazaar problems.


Patents and intellectual property rights are an example of imperfect solutions maintained by the government at cost to users. However, I found the balanced narrative between free-market and controlled markets a little too bland for my taste though.

I wish that McMillan were still alive today.

McMillan argues that government action is needed for effective markets ordo-liberalismand that is an important argument to make, but he fails to address its limitations. I get how to think “game theory”. The emphasis on market design is not out of place, because it is certainly of great importance, and full of challenges, particularly where the commodities to be traded do not have a historical trading precedent.

Information Wants to Be Free.

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

Open Preview See a Problem? McMillan devotes the first half of the book to what he identifies as the five basic components of market design: There are gains from trade, and people are relentless in finding ways to realize them.

McMillan does a good job explaining economic concepts in plain English. The author combines elements of ethnography with economic analysis. However, market-supporting institutions are necessary for markets to be workable.