How Markets Fail Quotes

“A common reaction to extreme events is to say they couldn't have been predicted”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“Economics, when you strip away the guff and mathematical sophistry, is largely about incentives.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“But whenever a crisis hits, many of the biggest players—banks, investment banks, hedge funds—rush to reduce their exposures, causing liquidity to dry up. Where previously there was heterogeneity and diversity of opinion, now there is unanimity: everybody wants to get out.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“Economics, when you strip away the guff and the mathematical sophistry, is largely about incentives.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“The rise of behavioral economics and neuroeconomics has presented a direct challenge to the concept of rationality that underpins much of economics.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“The point is clear enough—public goods and decreasing cost phenomena cause private market decisions to go wrong. Market prices will fail to approximate true scarcity values in terms of wants; they will be loaded with misinformation, and producers’ profit calculations will leave out of account much of the private benefit associated with public goods. The ‘invisible hand’ will fumble: people’s decentralized market choices will not efficiently cater to their tastes.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“Relying on the market to provide both private and public goods will always lead to underprovision of the latter.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“The economy is an organic whole, not just a collection of individual parts. If there is a big disruption in one industry, it will inevitably spill over into others”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“We must look at the price system as . . . a mechanism for communicating information if we want to understand its real function,” Hayek”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“lack of firm knowledge rarely equates with complete ignorance.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“The crisis is primarily, perhaps almost entirely, the consequence of decisions taken by private firms in an environment of minimal regulation,”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“Market failure isn’t an intellectual curiosity. In many areas of the economy, such as health care, high technology, and finance, it is endemic.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities

“Não falamos diretamente à sua humanidade, mas a seu egoísmo, e nunca falamos com eles a respeito das nossas necessidades, mas das vantagens que eles terão. Ninguém, a não ser um mendigo, prefere depender da bondade de seus concidadãos.”
― John Cassidy, How Markets Fail: The Logic of Economic Calamities