Reinventing the Bazaar: The Natural History of Markets (Hardcover)

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Editorial Reviews

Amazon.com Review

John McMillan's Reinventing the Bazaar is an extremely accessible description of markets large and small, as well as an explanation of their underlying mechanisms. An "absolutely free market," he says, is a "free-for-all brawl," while a "real market" is an "ordered brawl." Sprinkling his analysis with hundreds of anecdotes and examples--prison camps, eBay, the American experiment with alcohol prohibition, the Tokyo fish market, and traditional Ghanaian bazaars--and pertinent quotes from the likes of Chekhov, Twain, and Steinbeck, McMillan animates his subject. Why do banks build showcase headquarters? Which "frictions" brake, and which spur, various markets? Is the "invisible hand" attached to a clothed arm? Why are both pro- and antimarket absolutists, in McMillan's view, the economics equivalent of "flat-earthers"? Is there such an animal as a "perfect" market? Reinventing the Bazaar answers these questions, and many more, in an eminently wise, entertaining, and instructive way. --H. O'Billovich

From Publishers Weekly

An economics professor at the Stanford University Graduate School of Business, McMillan views this historical moment as a unique living laboratory for observing how technology, globalization and changing expectations of buyers and sellers have brought changes to everything from the international flower market based in the Netherlands to national economies. The sheer number of ingenious schemes that have surfaced over the last decade has had an intoxicating effect on McMillan; he skips from the 1994 FCC auction of the electromagnetic spectrum for pagers to the hugely popular Internet auction sites and the effects of intellectual property rights on innovation in this anecdotally rich survey of world markets and new trading opportunities. McMillan looks at a wide variety of industries including interstate trucking and fishery management and lays out the elements he regards as necessary for a smoothly operating market. An illuminating chapter comparing the deregulation and privatization experiences of New Zealand, Russia and China will leave readers wishing that McMillan had concentrated on just a few examples to establish in-depth his primary points: that good design of a market is crucial to its success, that a market develops over time by trial and error, and that government plays an indispensable role in providing public goods and acting as rule setter and referee in the best of all market-based worlds. As it is, the book feels scattered, and McMillan's tone is by turns condescending and frustratingly abstruse. Many readers will be disappointed.
Copyright 2002 Cahners Business Information, Inc.

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Product Details

• Hardcover: 256 pages
• Publisher: W. W. Norton & Company (June 2002)
• Language: English
• ISBN-10: 0393050211
• ISBN-13: 978-0393050219
• Product Dimensions: 9.3 x 6.1 x 1.2 inches
• Shipping Weight: 1.3 pounds
• Average Customer Review: 4.8 out of 5 stars  See all reviews (16 customer reviews)
• Amazon.com Sales Rank: #235,456 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

15 of 15 people found the following review helpful:

5.0 out of 5 stars A balanced look at markets, March 28, 2003

By	natron "natron" (Wash DC USA) - See all my reviews

This timely book describes the market systems of today's world. He is an advocate of what he calls the "market design approach" of economic systems. He has five things that a market needs to be effective: social trust, property rights protections, negative externality prevention, free flow of information, and competition. He makes a strong case for a `middle way' in economic development when it comes to government involvement. He argues that the controlled and command economies of the far left, and the laissez-faire libertarian approach of the far right are both equally garbage. He tells some interesting stories of the worldwide pharmaceutical industry and critiques it's free market effects on society and world health. His discussion of information and technology are somewhat simplistic in my opinion, and his conclusions that for economic development these two forces need to be free to innovate and profit seemed the same pedantic old story that is peddled by Gates and co. He makes a strong case for honesty in business and describes some very interesting approaches for regulating and policing business behavior. His discussion of patents and intellectual property rights seemed balanced in its look at how they can help and hinder business and society. He also describes (convincingly in my opinion) how individual and company behavior creates all kinds of negative externalities that cannot be left to the market to take care of. The last couple of chapters described the very different methods of economic transitions used by New Zealand, Russia, and China, and he has some interesting conclusions to offer. He also addresses a chapter to the anti-globalization movements, and to the Marxists and Libertarians, where he takes what they argue, and looks at statistical evidence, and pretty much negates their arguments without really addressing the sociological and political grievances and seems to take a more simplistic model that economic growth is the best way to improve the lot of everyone everywhere, which I found annoying. But overall, he makes a strong argument for markets and their abilities to supply the most efficient system of providing goods and services to a society, but also recognizes significant weaknesses inherent in it that must be balanced by government activity.

9 of 9 people found the following review helpful:

5.0 out of 5 stars The Best Begginers Guide to Markets, August 20, 2004

By	Carlos A. Pineda (Honduras) - See all my reviews (REAL NAME)

This review is from: Reinventing the Bazaar: A Natural History of Markets (Paperback)

Mc Millan's book makes it easy to understand how markets work, as well as their bennefits. Although it is not a book advocating free markets, it puts some sense into the idea through fun examples, stories and quotes. Anyone toying with the idea that free market economies are bad should read this book. As an imparial comment it might show a thing or two about why it is that free market policies don't seem to work for some countries(because they are not all that free)while in others they seem miracuolous.

The secrets of economic growth and sensible pro market policy can be extracted, although I wouldn't base a government's development plan on it.

The book is fun to read, easy to understand and highly illustrative. A must read for anyone (for or aginst free markets)

9 of 9 people found the following review helpful:

5.0 out of 5 stars Essential Information and Wisdom, January 14, 2004

By	Robert Morris (Dallas, Texas) - See all my reviews (TOP 50 REVIEWER)    (REAL NAME)

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Wherever buyers and sellers get together, there is a market. In the absence of currency, trades have been consummated by assigning relative value to items (e.g. livestock, weapons, clothing) or services (e.g. plowing, medical care, harvesting). Throughout human history, there have been markets in one form or another at which people exchanged or purchased goods of various kinds, usually in a centrally located area such as a crossroads, harborside, village center, or town square. Buyers and sellers (or traders) gravitated to markets where and when there would be the most people. At least to some extent, all that remains true today even with the emergence of cybermarkets. Effective marketing in the 21st century creates or increases demand first by attracting interest. Hence the importance of visibility. It must also provide a convincing argument as to why a given product or service is preferable to other options, including not purchasing anything. Supply and demand often come into play. Pricing is frequently a decisive issue. For centuries, be it in an ancient bazaar or modern market, buying/selling/trading is among the most dynamic of human activities.

In this lively as well as informative book, McMillan offers "a natural history of markets" which helps us to gain a better understanding of how markets work as well as of what they can and can't do. "Markets do what they are supposed to do, however, only if they are we structured. Any successful economy has an array of devices and procedures to enable markets to work smoothly. A workable platform has five elements: information flows smoothly; property rights are protected; people can be trusted to live up to their promises; side effects are curtailed; and competition is fostered." I agree with McMillan that, as a result of innovations made by participants, "spontaneous evolution is the main driver of [private sector] markets" if and when provided with assistance from the public sector (i.e. government).

Because throughout history the strength of markets has been their adaptability and their "restless reinvention," McMillan argues, shaping new markets is both a task for governments and an opportunity for entrepreneurs. Appropriate involvement by the former ensures, for example, the protection of intellectual property; appropriate involvement by the latter ensures that the process of adaptability and reinvention is sustained. There are so many excellent books now in print which discuss the most effective marketing strategies and tactics.

Secondarily, McMillan examines several of them but his primary purpose, as I understand it, is to explain how and why the market economy ("...the worst form of economy, except for all the others which have been tried from time to time") "solves some all but intractable problems...[because] it admits variety and permits criticism" This book will be of greatest interest and value to decision-makers with responsibility for marketing within organizations which either have no "workable platform" or one which may soon collapse from the weight of external competition or internal inadequacy.

I also highly recommend this book to those who have a keen interest in cultural anthropology. As suggested earlier, the bazaar or market has always been and always will be among the most dynamic of human activities. Why? Because it must constantly be reinvented to accommodate ever-changing human needs and interests. McMillan's comprehensive analysis of that volatile process is a unique and brilliant achievement.