Market Failure or Success: The New Debate [Paperback]

The Independent Institute (Author), Tyler Cowen (Editor), Eric Crampton (Editor)

Book Description

ISBN-10: 1843760851 | ISBN-13: 978-1843760856 | Publication Date: April 1, 2004

Recent years have seen the development of new theories of market failure based on asymmetric information and network effects. According to the new paradigm, we can expect substantial failure in the markets for labor, credit, insurance, software, new technologies and even used cars, to give but a few examples.

Market failure at the microeconomic level may even create or aggravate macroeconomic disturbances. Despite the importance of the new theories, no systematic critical examination has been available - until now. Market Failure or Success, now available in paperback, brings together the key papers on the subject, including classic papers by Joseph Stiglitz, George Akerlof and Paul David, along with powerful theoretical and empirical rebuttals. The rebuttals challenge the assumptions of the new models and question the usual policy conclusions. Examination of real markets and careful experimental studies fail to verify the new theories.

Market Failure or Success is required reading for all who seek to better understand one of the most exciting debates in economics today.

Editorial Reviews

About the Author

Edited by Tyler Cowen, Professor of Economics, George Mason University, Director, Mercatus Center and Director, James Buchanan Center for Political Economy and Eric Crampton, Doctoral Candidate, George Mason University

Product Details

• Paperback: 384 pages
• Publisher: Edward Elgar Pub (April 1, 2004)
• Language: English
• ISBN-10: 1843760851
• ISBN-13: 978-1843760856
• Product Dimensions: 9.1 x 6 x 0.9 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #1,660,603 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

14 of 15 people found the following review helpful:

5.0 out of 5 stars Delightful Survey of Anti-capitalist "economics", July 8, 2004

By A Customer

This review is from: Market Failure or Success: The New Debate (Paperback)

This book is intended for a reader with a working knowledge of economics. While not integral, mathematics is used, and a variety of references are made to economic theories, differing schools of thought, and information from previous articles. All of which is assumed to be known already. Having said that, this is an enjoyable read that will show you the "hot spots" in current economic debate. Highly informative and packed with powerful ideas on both sides, including those of a nobel prize winner Joseph Stiglitz, these ideas cannot be ignored. The details of the argument are too indepth to recant here, but I would HIGHLY RECOMMEND this book to anyone that is interested in economics. In summary of the book, the market process will find a way to transmit the information that Stiglitz conjectures will bring down capitalism. Unfortunately for Stiglitz, the Volkswirtschaft of his dreams does not have a leg to stand on after the brilliant rebuttals of the many authors.

Cowen and Crampton have compiled sixteen articles discussing comtemporary market failure theories. After an excellent introduction that captures the nature and spirit of the book, there are four articles purporting theories of market failure. Following this are rebuttables by theoretical, empirical, and experimental processes.

Excellent for use in a college class or for personal enrichment!