Reinventing the Bazaar: A Natural History of Markets [Paperback]

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.

I have read this book about 2 years ago and still keep its key learning: markets are extremely sophisticated tools that can bring about huge benefits, if they are properly working.

As for every tool, there is no instrinsic moral value in markets. Outcomes all depend on market design, the use we make of the tool and the overall context.

The impacts and usefulness of markets is wide ranging, the most important of which is to provide a system to sort out huge complexities around resource allocation, price discovery and information exchange. A most remarkable feature is that markets have not been invented, but have emerged - more or less like living organisms - from human experience, through trial and error over a very long path of human history. Like all living things, they can and often do fail but are essential components of everyday life.

I trust you will enjoy this reading. It gives an excellent guided tour of the subject also for the relatively un-initiated (I am no economist). The end-notes are also very informative and an excellence source of references (including websites) which you can consult if you are interested in deepening the subject further.