How Markets Work
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How Markets Work

Supply, Demand and the ‘Real World’

9781847206138 Edward Elgar Publishing
the late Robert E. Prasch, formerly Associate Professor of Economics, Middlebury College, US
Publication Date: 2008 ISBN: 978 1 84720 613 8 Extent: 192 pp
An accessible and enjoyable look at the way the market REALLY works!

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.

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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.
Contents
Contents: Part I: The Theory of Markets Introduction: Economics Today: Is Market Fundamentalism in Decline? 1. Property, Contract, and the Theory of Exchange 2. Commodity Markets: The Economics of a ‘Spot’ Contract Part II: Market Processes when Information Matters 3. Credit Markets: The Economics of a ‘Relational’ Contract 4. Asset Markets: Market Dynamics when Expectations are a Consideration Part III: Labor Markets 5. Labor Market Dynamics when Needs are a Consideration 6. Labor Market Dynamics when Motivation is a Consideration Part IV: Social, Ethical and Political Considerations 7. The Economics of Discrimination: The ‘Chicago School’ Approach 8. The Economics of Discrimination: The ‘Structural’ Approach 9. Values and Prices: Reintroducing Ethical Considerations into Economics Conclusion: Some Reflections on Economic Policy Bibliography Index
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