Summary of The Inner Lives of Markets

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

The Inner Lives of Markets book summary
Start getting smarter:
or see our plans

Rating

8 Overall

7 Importance

7 Innovation

9 Style

Recommendation

In the 21st century, markets in which competing sellers and multiple buyers meet face-to-face and haggle over prices are increasingly rare; that’s the classic free market model guided by an invisible hand. Instead, platforms like eBay are emerging in ever-increasing numbers, transforming marketplaces and replacing the invisible hand with customized interactions among participants. In this enlightening travelogue of markets and economic theories, authors Ray Fisman and Tim Sullivan use a breezy, anecdotal style to illuminate how people make decisions in their day-to-day economic lives in this newly emerging world. getAbstract recommends this intriguing overview to general readers as well as to executives and investors.

In this summary, you will learn

  • How prevailing economic theory is out of touch with real-world markets,
  • How people shape markets and outcomes by acting on imperfect information, and
  • How market behaviors influence social relationships and individuals’ ethics.
 

About the Authors

Ray Fisman teaches behavioral economics at Boston University and wrote The Org and Economic Gangsters. Tim Sullivan is the editorial director of Harvard Business Review Press and also wrote The Org.

 

Summary

Markets

Buying and selling are part of human nature. Markets give people a way to assign value to goods, services and experiences, as well as to obtain what they want. The free markets central to established economic thinking operate through buyers and sellers interacting directly to set their own prices and make their own exchanges. This system creates desirable outcomes in theory, but – in reality – it often yields unwanted results. In contrast, the market makers emerging in the early 21st century, such as eBay, design platforms with rules to bring together buyers, sellers, payment providers and other parties. While these still-evolving marketplaces enable buyers and sellers to conduct transactions smoothly, these platforms call for new economic and social understanding.   

Get the key points from this book in 10 minutes.

For you

Find the right subscription plan for you.

For your company

We help you build a culture of continuous learning.

 or log in

Comment on this summary

More on this topic

By the same authors

  • Book
     

    Ray Fisman and Tim Sullivan

    Twelve, 2013

    (8)

Customers who read this summary also read

More by category