Why read The Architecture of Markets?

Book cover of The Architecture of Markets: An Economic Sociology of Twenty-First-Century Capitalist Societies

Book description

Market societies have created more wealth, and more opportunities for more people, than any other system of social organization in history. Yet we still have a rudimentary understanding of how markets themselves are social constructions that require extensive institutional support. This groundbreaking work seeks to fill this gap, to make…

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Why read it?

1 author picked The Architecture of Markets as one of their favorite books. Why do they recommend it?

Steven K. Vogel

Author

My view of markets has been heavily influenced by my colleague from the Sociology Department downstairs, Neil Fligstein.

He follows Polanyi in posing a direct challenge to the basic assumptions of economics. He argues that firms seek stability, not necessarily profit maximization. That is, they want to stabilize prices and keep the firm intact.

He also brings power to the center of his view of markets. Incumbent firms engage in power struggles. They use business strategies, like collusion, and political strategies, like lobbying for favorable regulations, to insulate themselves from disruptive competition.

From Steven's list on how markets really work.