How Markets Work: Supply, Demand and the ‘Real World’

by Robert E. Prasch

How Markets Work presents a new and refreshing introduction to elementary economics. The venerable theory of supply and demand is reconstituted upon plausible and defensible assumptions concerning human nature, the law, and the facts of everyday life - in short - the -'Real World'. The message is that markets differ in ways that matter. Starting with a brief survey of property and contract law, the lectures develop several 'ideal types' of markets - such as credit, assets, and labor - while illuminating the similarities and differences among them. Care has been taken to ensure that the reformulations presented are accessible to students and compatible with a variety of non-mainstream traditions in economic thought. Topics covered include the theory of markets, labor markets, market processes when influenced by the availability of information, and social, ethical and political considerations. Also discussed are commodity, credit and asset markets, contracts, dynamics of labor markets, and the economics of discrimination. This book is intended as an essential supplemental text for undergraduate economics students, particularly in heterodox programs, as well as for those in companion liberal arts and sociology fields looking for an accessible introduction to essential economic theory.

Genres: Economics

192 pages, Paperback

First published November 1, 2008

Reviews

[William T. · Rating 4 out of 5]

This series of lectures by Robert Prasch are the perfect antidote to the complete lack of reality in textbook treatments and popular journalistic accounts of how markets really work. It is a excellent introduction to the silliness of the concept and the complete lack of correspondence in the real world to the notion of a "free market" economy. Prasch's book is an excellent supplement to a principles of microeconomics text or an intermediate microeconomics text. Certainly no aspiring economist in this day and age should miss this book.

That said, this book is not a full blown heterodox critique of microeconomic theory. It simply points out the obvious real world elements left out of the theory by true believers. It is a good starting place for creating a healthy skepticism about our current free market religious orthodoxy. But the skeptical reader should certainly move on to a fuller critique of microeconomics at its methodological core. For that one needs to move on to a careful study of original institutional economics including Thorstein Veblen, John R. Commons, Gardiner Means, John Kenneth Galbraith and others.

[Turki Almusiened · Rating 4 out of 5]

you can read my review at this link:


http://turkialmusiened.tumblr.com/pos...

[Cameron Wilson · Rating 5 out of 5]

The back cover description basically nails it down. The simplistic and reactionary neoclassical theory of prices and the labor market is in tatters in 2018. This book provides a great alternative method to think about the labor market, assets, and discrimination in a "supply and demand" presentation. Much of the arguments will be elementary to compassionate people that care about institutions and history, but sadly these lessons have been ignored and "forgotten" by the world's current crop of neoliberal leaders. Quick, approachable, essential reading.

[Eric Bottorff · Rating 3 out of 5]

A useful book for anyone who either (a) teaches economics and wants to supplement the standard presentation of supply&demand (I also think his first lecture on the labor market is excellent), or (b) took an econ class in college and wants a quick read to further refine their understanding.

[Dennis · Rating 4 out of 5]

http://pro-libertate.net/20140317/232...