How Markets Work and Fail, and What to Make of Them (New Horizons in Institutional and Evolutionary Economics Series)

In this thought-provoking book, Bart Nooteboom offers a radical critique of the principal intellectual and moral assumptions underlying economic science, unravelling the notion of markets: how they work and fail, and how they may be redirected to better serve us.

Initially, the inadequacy of economic science in the wake of recent financial and economic crises is outlined. Few economists predicted the crises and subsequent economic thought has been nebulous, failing to apprize guidance, understanding and prevention for the future. Established practices in finance and business continue regardless, and confusion has bred among policy makers, the public, and even economists on what markets actually are. Bart Nooteboom employs an Aristotelian virtue ethic, with a view to multiple dimensions of 'the good life', upturning the utilitarian ethic that dominates economic science and modern politics. The critique makes a corrective-turn, transforming economic thought into an integrative, ethical and interdisciplinary behavioral science of markets.

Nooteboom's interdisciplinary approach makes this book an appealing read to economists, sociologists and political scientists with an interest in market processes. People concerned about how markets are developing and policy makers will welcome this topical work to gain fresh insights into collaborative and ethical market policy. This timely book will vitalize debate about markets, what they do and how they may work better.

The late Bart Nooteboom, formerly Tilburg University, the Netherlands