Book Description

Provides readers with a solid background in the theories of economic geography, while examining contemporary issues. Updated edition integrates new recent research on industrial geography using information published within the last ten years with an added global emphasis. Features a new chapter on interdependent global economies and improved figures and graphics, including updated tables throughout the text. ... Read more

Reviews (14)

Disappointed
I am a Finance Ph.D. student and I bought this textbook for my Micro class, and I found that this book did a very poor job in explaining the Micro concepts to a student like me with solid math background but little micro one. The authors, for some reason, use a more than difficult language to explain even the simple things. I believe that great teacher is the one who can explain even the most complicated concepts in simple way. Obviously I do not put Jehle- Reny in this teacher category. If you want to get a simple yet meaningful concept explanation, check out Walter Nicholson's book. I highly recommend that book for the introduction to Micro.

If you want to buy a Micro textbook, do not take these people's feedbacks instantly. Chances are WE ALL ARE DIFFERENT that we have different opinions, so compare the books and decide for yourself !
Happy hunting !

I wish I knew about this book before grad micro...
The assigned text in my graduate micro theory class was Mas-Collel/Whinston/Green (MWG), a book that I couldn't wait to get rid of. However, I have a much better appreciation of MWG after having read Jehle and Reny (JR). JR is strong where MWG is weak and vice versa. JR provides a clear, self-contained introduction to key concepts in advanced micromicroeconomic theory but is not comprehensive in its coverage. MWG on the other hand is more terse and requires a greater level of math preparation, but is truly the encyclopedia of micro. Regarding the comments of the disappointed reader from Cambridge MA, it's true that there are not many applications in J&R, but that's not really the point of this book. As the title indicates, this is a theory book. Nicolson's or even Varian's intermediate texts are good places to look for applications. But for grad micro theory, I would recommend reading both JR and MWG, in that order.

Dont buy this crap!!!
Dont buy this...! It is EXTREMLY hard to follow, unless you have a math background. The notations are very confusing. It explains concepts mathematically and you are expected to come up with the logic on your own. In my Graduate level class of 20 studing advanced micro, EVERY SINGLE PERSON said they are clueless about what it says. The text is so highlevel to understand. I had to read the very first chapter FIVE times to understand what is says and then I realised that it was explaining something I already know from Intermediate Micro, that indiferrence curves are convex to the origin!

So, I would recommend you buy this excellent book "Microeconomic Analysis" by Hal R. Varian or "Microeconomic Theory" by Andreu Mas-Colell, Michael D. Whinston, Jerry R. Green (which costs only a fraction of the cost of this junk...). So, dont waste your time and money of this ...

You never dissappointed
I am so regretful of knowing this book late.
This book gave me another interest in economic analysis with clear insight, which surely is the foundation of other applications.
I recommend it to you in eagerness to develop analytical mind. Don't miss it this time.

Must Buy It
This is a very good Advanced Microeconomic textbook for graduate stidents. I love its math appendix because it helps me review the useful math tools for the advanced microeconomics. It describes the microeconomic theories much cleraer than other textbooks. You must buy it if you are taking the advanced microeconomic course. ... Read more

Book Description

Making, amending, and interpreting constitutions is a political game that can yield widespread suffering or secure a nation's liberty and prosperity. Given these high stakes, Robert Cooter argues that constitutional theory should trouble itself less with literary analysis and arguments over founders' intentions and focus much more on the real-world consequences of various constitutional provisions and choices. Pooling the best available theories from economics and political science, particularly those developed from game theory, Cooter's economic analysis of constitutions fundamentally recasts a field of growing interest and dramatic international importance.

By uncovering the constitutional incentives that influence citizens, politicians, administrators, and judges, Cooter exposes fault lines in alternative forms of democracy: unitary versus federal states, deep administration versus many elections, parliamentary versus presidential systems, unicameral versus bicameral legislatures, common versus civil law, and liberty versus equality rights. Cooter applies an efficiency test to these alternatives, asking how far they satisfy the preferences of citizens for laws and public goods.

To answer Cooter contrasts two types of democracy, which he defines as competitive government. The center of the political spectrum defeats the extremes in "median democracy," whereas representatives of all the citizens bargain over laws and public goods in "bargain democracy." Bargaining can realize all the gains from political trades, or bargaining can collapse into an unstable contest of redistribution. States plagued by instability and contests over redistribution should move towards median democracy by increasing transaction costs and reducing the power of the extremes. Specifically, promoting median versus bargain democracy involves promoting winner-take-all elections versus proportional representation, two parties versus multiple parties, referenda versus representative democracy, and special governments versus comprehensive governments.

This innovative theory will have ramifications felt across national and disciplinary borders, and will be debated by a large audience, including the growing pool of economists interested in how law and politics shape economic policy, political scientists using game theory or specializing in constitutional law, and academic lawyers. The approach will also garner attention from students of political science, law, and economics, as well as policy makers working in and with new democracies where constitutions are being written and refined. ... Read more

Reviews (4)

Very useful synopsis of key themes
If economic analysis of law had developed in continental Europe it would probably have begun with Constitutional law, rather than torts (Cf. Calabresi, the Cost of Accidents). As it was, the body of economic analysis of constitutional law is just starting to come together from a variety of sources, including public choice theory. Cooter came up with the idea for this book by way of discussions with European constitutional law experts. The book has all the merits of Cooter & Ulen's "Law and Economics". It is very easy to follow because it has been clearly written. It is not as deep, but neither is it as verbose as Posner, nor as insightful, or as superficial, as Sunstein. As a law and economics professor I have found it a Godsend. Its many examples and exercises make it a perfect undegraduate textbook, and it is high time it were translated into other languages (particularly Spanish, where there is no equivalent contemporary text). One would hope that Cooter would follow it up with a casebook with American and European cases. This is still a white space, and there's no one better qualified than Cooter to fill it up.

One caveat is that The Stratetic Constitution still shows the joints between some of the chapters and the greater whole, and there seem to be other subjects which could have been dealt with in greater detail, such as the impact of positive constitutional rights, which is significant in many countries whose systems are based on statutory law.

Constitutional Law and Economics
Well written, simple and complete. If I wasn't aware of the existing public choice literature I would have thought that this branch of economics (or law?) is mature and well developed, and that this book is a University textbook for a would-be course in Constitutional law and economics (if ever tought). However, this field is still fresh and unchartered, and this book gives a good idea of what to expect next.

Good undergraduate text, Mueller (1996) may be a better buy
This is an excellent introduction to the study of constitutions and the organization of government. The author did a wonderful job at selecting topics that related to each other and provided a rather complete bird's eye view of how economics can be used to study government. When I first browsed at its table of contents, I thought this was THE book I needed for my research on public administration and political economy(at least in this respect, the topics here are more cohesive than the smosgarbord of Persson and Tabellini's Political Economics or Drazen's Political Economy and Macroeconomics). Despite its breadth, however, Cooter's book lacks in depth of analysis, and this makes it more suitable as an undergraduate text or an introduction to nonspecialists. I agree with the first reviewer that the book is not very good at justifying assumptions and that the analysis provided can be simplistic at times. For instance, one major weakness stems from the author's obsessive adherence to the original methods of the field of Law and Economics; namely, the emphasis on basic price theory and microeconomic theory, which makes the book read more like an undergraduate text in (applied) economics. What is lacking, and this is what makes Persson and Tabellini's and Drazen's books superior, is a more systematic and rigorous use of contemporary tools such as game theory. Because it lacks rigor, this book is not suitable for research or reference purposes. It is also dated in the sense that it clings to a Law and Economics paradigm that is decades behind the latest work in positive or formal political theory.

If you are serious about studying economic models of politics for research purposes, I would suggest buying the following books:

1) Persson and Tabellini, Political Economics, MIT Press, 2000.

Written by economists, this book focuses TOO MUCH on economic policy, but the first part on foundations and analytical tools is one of the best I have seen. In their favor, the authors also do a good job at describing the frontier of research and the limitations of their book.

2) Drazen, Political Economy in Macroeconomics, Princeton 2000.

This book is also written by an economist, and, unsurprisingly, it is biased towards economic policy. Like the previous book, it has chapters that teach you the underlying models. In addition, the author does have a unifying theme throughout the whole book, so despite the various topics, you can make sense of the analytical power you gain by explicitly adding political elements to mainstream (macro)economic models.

3) For an overview of applications, you could either buy Cooter's book, or, in my view, a better book (in terms of depth, although less cohesive in substance) on public choice:

Dennis Mueller (ed.), Perspectives on Public Choice: A Handbook, Cambridge 1996.

The Simplicity Constitution
Cooter's work the Strategic Constitution is inciteful in many regards. People not well versed in Law and Economics will find it a refreshing and easy to understand conception of the constitutional scheme. He presents his ideas clearly and doesn't assume too much about the lay reader's understanding of law or economics. It is a valuable first step into seeing Constitutional schemes through a less traditional lens. On the other hand, where the book is solid for novices, it is quite deficient for serious students of either law or economics. In his attempt to explain constituitonal issues using economics, he is guilty of oversimplying models to absurdity -- which, to some extent, is deceptive for non-students of law and economics. He rarely states assumptions or faults with his model or where new research is required to make the models more dynamic. The strategies implied are usually monotonic failing to realize that actors will modify their strategies for a more dynamic and complicated outcome if the results he presents are accurate. These faults are best shown in his seperation of powers analysis which not only improperly erroneously only considers "single-issue problems" but, along this vain, fails to factor in politics (or more complex strategic interactions) and non-policy focused preferences which occur and effect outcomes. For example, let's say A doesn't like a policy but is of the President's party, Cooter assumes (or by default assumes) that this person will vote to override a Presidential veto. Another failure of the book is its lack of empirical support. He cites few studies which are explained rather poorly. Overall, it is hard to believe that forty years of law and economics has not more flesh than the skeleton Cooter presents. ... Read more

Reviews (35)

Very good read but flawed
As we are used from the authors ( The Prize and their work in CERA) we get a very well written and well researched expose. It is by far not as dry as most books on this subject and actually it is quite light reading.

It starts of well by demonstrating the rise and decline of Government dominated economies in the West as well as in other parts of the world. They describe the initial successes and later failures. The transition to the free market economies we have seen in the past two decades is described well. Unfortunately the book does little more than that...description.

In particular the idea that we have fixed everything now with the global free markets radiates from some of the pages on the Chicago/Harvard experts. The questions posed in the introduction on e.g. how to deal in terms of social and moral systems with the new economic order do not get attention. Instead we gate the same feeling as with reading Fukuyama's End of the World History which at that time was pretentious and looks utterly ridiculous today.

It is not only the current economic crisis but also the imbalances the new system has brought ( eg overproduction of commodities, loss of control over currencies, destabilized capital flows) that has not been identified as possible outcomes of the free market policy. This leaves alone the many disasters the world has seen with privatization.

Therefore, a very good and entertaing read but a bit short on the thought provoking side.

Offers insightful understanding of globalization.
Daniel Yergin provides the reader extraordinary insight into contemporary globalization. In a masterful, sweeping work that encompasses economic and social history of the post-war era, Yergin (who won the Pulitzer Prize for "The Prize," his study of the oil industry) and his co-author Joseph Stanislaw help us understand how economies around the world, but especially in the third world, are abandoning the old faith in big government and are embracing the marketplace. But Yergin and Stanislaw also warn that the marketplace -- laissez-faire -- is fraught with perils for countries that don't have sound governance and indigenous institutions and entrepreneurs who are able to function responsibly in an increasingly interdependent world. I found the book's analysis particularly lucid; the chronology at the end, which details the evolution of economic theory as well as cites political trends, should be especially useful to students. This is a book I'd recommend highly for laymen and scholars alike.

Resource Allocation and the Battle of Economic Ideals
In Carl Sagan's "Contact," the unknown entity encountered by Arroway after her journey into the wormhole delivers a scathing critique of the human condition, and goes on to express his concern about Earth's "astonishingly backward economic systems." "Commanding Heights" is a comprehensive account of those "backward" economic systems and chronicles the seemingly amaranthine battle between governments and the marketplace for control of the most important elements of the global economy. The discussion centers on the economic events of the second half of the twentieth century, sandwiched between the establishment of the British welfare state at the conclusion of the Second World War and the Asian financial contagion unfolding at the time of the book's publication.

The theme of "Commanding Heights" is the superiority of resource allocation via free markets vis-à-vis resource allocation by means of government control of strategic business undertakings. Along this free market-government control continuum, there are three fundamental, ideological positions concerning the workings of an economy: economic totalitarianism, strategic intervention, and non-interventionism. Given this backdrop, the second half of the twentieth century is depicted as a colossal experiment in wealth creation and redistribution. Advocates of neoclassical economics such as Friedrich von Hayek pitted their ideas against Keynesians and supporters of the command-and-control system.

World War II and its concomitant cost in human lives and shattered economic potential served as the catalyst for a remaking of the global economic order. Policymakers and politicians began questioning the effectiveness of a purely laissez-faire market system in mitigating the impact of macroeconomic failures and in addressing the issues of equity, poverty, and unemployment. Keynes provided a blueprint for the emergence of the so-called mixed economy, advocating government intervention through fiscal and monetary measures. Nationalization of strategic industries, central planning, and direct regulation were some of the tools made available to administrators.

By the time of the oil shocks of the 1970s, it became increasingly clear that this system of state control over essential economic activities was ill-equipped to deal with market shocks, and that regulatory capture rendered direct government supervision of natural monopolies and fundamental services ineffective and untenable. At the end of the 1980s, concerns about market failure started to give way to belief in the superiority of the market in allocating resources and ensuring that economic actors adhere to the principles of equity and fair play. Government began to take a back seat from managing the commanding heights of the economy, and privatization, deregulation, and liberalization became the norm.

The authors are unabashedly in favor of laissez-faire economics; this is shown by the recounting of recent economic history as a set of multifarious journeys undertaken by various countries that nearly invariably leads to the adoption of neoclassical economics as the sole logical solution to the ills caused by big government.

Ultimately, whether the experiment with 'enlightened' free enterprise and the continuing retreat of government will succeed or not in the long term will depend on a host of factors, such as: (1) is the pursuit of pure profit by erstwhile government-owned entities detrimental to public welfare? (2) will liberalization ensure a fair distribution of wealth? (3) does internationally mobile capital impinge on national sovereignty? (4) is the marketplace inherently superior in price determination, especially in the short term? and (5) will the "balance of confidence" turn out to be in favor of free markets?

GREAT BOOK
Extraordinary ! Hard to write, easy to read ! Academic approach with a non-academic language ! While you are reading this book, you are learning without realizing ! This book makes learning economics enjoyable.
A good look at the battle between government and market forces in the history of economy. New economies, emerging markets, economic thoughts, governments, all of them are included in this book. From China to Argentina, you can trace the history of economic battle between the governments and market forces. All I can say is , if you are interested in world politics and world economics, if you are running for presidency, if you are a businessman or bureaucrat, you need this book in order to get some lessons from the past.

Did You Say "A Lively Economics Book"?
Don't be scared, Commanding Heights, in every sense, is a lively yet informative economics book. A text for everyone, from the main street person to Milton Friedman

The writers, Daniel Yergin and Joseph Stanislaw, are both players of the business world, and Ph.D. holders (Yergin's from Cambridge University, where he was Marshall Scholar, and Stanislaw holds a Ph.D. from Edinburgh University). Furthermore, Yergin's book "The Prize" was awarded the Pulitzer Prize. One could only expect a dry, scholarly frightening work from the two, but, surprisingly, Commanding Heights is anything but intimidating.

This is a very good introduction to 20th century's economic plans and philosophies- from Gandhi's "swadeshi" to Thatcherism of the late 1970s and 80s to the 'global economy' of the 90s and present.

The book's treatment of Thatcher and Thatcherism is very good and readable, and almost enlightening. The portrayal of Margaret Thatcher is illuminating, if not flattering for the subject. The Thatcher of the book is not the evil witch of left-wing politics, but that of a hard-working, decent and uncompromising woman from a lower middle class background. Her (political) partnership with Joseph Keith and her devotion to Keith's plan is intriguing, and her David-and-Goliath battles with the 'establishment' is inspirational. ("I am the rebel head of an establishment government" she once boasted). Keynesians beware- this book might turn you into a Thatcherite!

Another highlight is the book's treatment of Latin America's economic dogmas and policies. Here, Chapter Nine of the book, it reads like a dark, compelling, political thriller authored by Vargas Llosa (Not surprisingly, Llosa's name appears in this book). Like the rest of the book, this chapter is highly fascinating and lively.

With great clarity and intelligence, this is a highly recommended 'big' book. A great companion as we face a new century. READ IT! ... Read more

Book Description

In this novel introduction to modern microeconomic theory, Samuel Bowles returns to the classical economists' interest in the wealth and poverty of nations and people, the workings of the institutions of capitalist economies, and the coevolution of individual preferences and the structures of markets, firms, and other institutions. Using recent advances in evolutionary game theory, contract theory, behavioral experiments, and the modeling of dynamic processes, he develops a theory of how economic institutions shape individual behavior, and how institutions evolve due to individual actions, technological change, and chance events. Topics addressed include institutional innovation, social preferences, nonmarket social interactions, social capital, equilibrium unemployment, credit constraints, economic power, generalized increasing returns, disequilibrium outcomes, and path dependency.

Each chapter is introduced by empirical puzzles or historical episodes illuminated by the modeling that follows, and the book closes with sets of problems to be solved by readers seeking to improve their mathematical modeling skills. Complementing standard mathematical analysis are agent-based computer simulations of complex evolving systems that are available online so that readers can experiment with the models. Bowles concludes with the time-honored challenge of "getting the rules right," providing an evaluation of markets, states, and communities as contrasting and yet sometimes synergistic structures of governance. Must reading for students and scholars not only in economics but across the behavioral sciences, this engagingly written and compelling exposition of the new microeconomics moves the field beyond the conventional models of prices and markets toward a more accurate and policy-relevant portrayal of human social behavior.

... Read more

Book Description

Book Description

"Business is a game--the greatest game in the world if you know how to play it," said IBM's founder Thomas J. Watson. He would probably agree that business negotiations are essentially the game of predicting what the other person will do. Faced with employees, subcontractors, salespeople and others, managers are continually called upon to make strategic decisions based on how someone else will act and react.How do the successful ones do it? Is it savvy? Guesswork? Even the most canny negotiators would be hard pressed to describe their own methods, which they generally develop intuitively over long and costly experience. But a key to becoming a top negotiator is now available to managers at all levels, in Games, Strategies, and Managers--the revealing new book that injects some science into the art of business decisionmaking.

Adapted from the hottest new area of economic theory and based on the latest breakthroughs, Games, Strategies, and Managers goes far beyond the advice commonly offered to negotiators--the old saws, the tales about what worked once in Cleveland--to provide powerful insight into what's really going on beneath every negotiation. Using seven key questions as a starting point, it helps the executive strip away the distracting details of a situation.It doesn't matter if the issue is commissions, piece rates, royalties, managerial incentives, or cost-overrun provisions--the game is the same. The negotiator who recognizes these underlying rules and exploits them to best advantage will gain the upper hand, in formal negotiations as well as in dozens of everyday business situations. Of course, any game involves risk. Managers often have to make a decision without full knowledge of the consequences, and others' actions are not entirely predictable. Game theory explores how to take creative risks to get the strategic edge. Invaluable practical illustrations that show game theory in action include the setting of executives' incentives, the organizing of a network of subcontractors, and a behind-the-scenes look at how international trade negotiations really work.

For the sales manager devising a commission-payment scheme to motivate salespeople, the procurement manager trying to get a subcontractor to limit production costs, the compensation committee designing a managerial incentive scheme, and beginning or experienced executives in all industries, Games, Strategies, and Managers shows how to excel at "the greatest game in the world." Even more than a powerful tool of business strategy, game theory is a valuable habit of mind--a way for executives to sharpen their thinking in business and in life. While experience may help you see the trees, game theory shows you the whole forest. ... Read more

Book Description

Few discussions in modern social science have occupied as much attention as the changing nature of welfare states in Western societies. Gsta Esping-Andersen, one of the foremost contributors to current debates on this issue, here provides a new analysis of the character and role of welfare states in the functioning of contemporary advancedWestern societies. Esping-Andersen distinguishes three major types of welfare state, connecting these with variations in the historical development of different Western countries. He argues that current economic processes, such as those moving toward a postindustrial order, are shaped not by autonomous market forces but by the nature of states and state differences. Fully informed by comparative materials, this book will have great appeal to all those working on issues of economic development and postindustrialism. Its audience will include students of sociology, economics, and politics. ... Read more

Reviews (2)

essential reading
This book blew me away when I read it. In fact, I read it again as soon as I finished it. This book is thoroughly documented to support the author's point. Whereas John Stephens focused more on total spending on welfare state programs, Esping-Andersen pointed to the crucial role that ideology plays in the structure of the welfare state. The structure of the programs often being more important than the total amount of money spent. Anyway, I don't need to recount the details of his argument. This book was a paradigm shifting, enlightening experience. I understand the world better because of this book. I think you will too.

Esping-Andersen Thinks Big Thoughts
As a policy analysis grad-student, I couldn`t help but like this book. In a field where so many authors stick slavishly to what they can PROVE empirically, Esping-Andersen dares to ask big questions and think big thoughts. Interpreting the welfare state from a nineteenth centuryesque political economy perspective, he provides real insight, and defends his Marxist-inspired interpretation with flair and not a little bit of style. Not only that, but his exposition is clear and (dare I say?) kind of fun to read. If you want to understand why all rich western societies spend a BIG chunk of GDP on the welfare state, this is a great place to start ... Read more

Book Description

The Washington Post described the collapse of the massive hedge fund Long-Term Capital Management as "one of the biggest financial missteps ever to hit Wall Street." The Wall Street Journal called the fund "one of [Wall Streets] most aggressive offspring" and the Financial Times described it as "the fund that thought it was too smart to fail". Business Week put the collapse down to the fact that "Long-Term Capitals rocket science exploded on the launchpad". LTCM was built on genius. Its founding partners included John Meriwether, the once legendary king of bond trading on Wall Street and Robert Merton and Myron Scholes, Nobel laureates in economics who between them (together with the late Fischer Black) all but invented modern finance through their theory on pricing options. Between 1994 and April 1998 LTCM seemed able to turn this genius into staggering profits. At its peak it commanded funds of US$130 billion and a derivatives portfolio with a notional value equivalent to the entire annual budget of the US Government, making fortunes for those who invested in it. Until suddenly it all went very wrong. Incredibly, it was the assumptions buried deep in the small print of Scholes and Mertons theory on option pricing that had begun to break down, and during that fateful summer of 1998 this breakdown was further aggravated by the regulatory-approved risk management systems designed to avert such a disaster. Based on extensive research and interviews, Inventing Money takes the reader on a fascinating journey. Beginning in Ancient Babylon, Nicholas Dunbar steers a path encompassing the American Civil War, an obscure French mathematician, the chance meeting of Merton and Scholes in the late 1960s, Meriwethers brilliant bond coup in the 1980s, up to and beyond the dark days of collapse and rescue in September 1998. As the story moves towards its incredible climax, the layers of LTCMs trading activities are stripped bare to reveal brilliance and controversy. Merton, Scholes and Meriwether are at the con of this captivating story but as it unfolds, the reader is introduced to legendary characters in the world of finance, moments of groundbreaking scientific discovery and a clear explanation of the seemingly complex seeds of ultimate collapse — options, futures and derivatives. Finance ... Read more

Reviews (38)

Good story telling, but too dumbed down
This book definitely chronicles what you are looking for from the beginnings of option pricing to the LTCM liquidity crisis in Aug/Sep 98. Also, the book gets better as you read on as Dunbar fills in the story quite well by linking events together and relating their significance. My only material criticism is that the book is dumbed down too much. I imagine this is so that the book will appeal to a broader audience than just Wall St types. But, for Wall St types, it drags at times as Dunbar explains basic option pricing, and portfolio and risk management theories. On the other hand, if you are not familiar with these concepts, you should not fear this book for not understanding those concepts - they are explained quite deftly.

All in all, certainly worth the read. A great story! I recommend it to anyone interested in LTCM.

Great narrative of financial engineering...
Dunbar does a wonderful job in recounting the rise and fall of Long Term Capital. This book not only tactfully interweaves the character of the powerful wall street players with their intricate and ingenious strategies, it also effectively accomplishes presesnting the macroeconomic landscape for the reader through well chosen examples from various historical periods. Suspenseful yet fascinating events keep the reader digging through the pages. Though by no means light, armed with basic knowledge in financial derivatives, the reader can easily appreciate the complex positions taken by LTCM, but more importantly, see how these artificially engineered financial instruments, when designed "properly", can generate such enormous impact on an international scale. The story only touches the surface of the vastly unlimited world of financial engineering, but it is inspiring to read about 7 finance geniuses attempt to create an empire capable of manipulating trillion dollar worth of financial asset and derive billion of virtually riskless profits from thin air. I highly recommend this book to anyone who deeply believes in market inefficiency. It sits in my small collection along with Liar's P, The Market Wiz,... and rightfully so.

One Of My Favorites
This is a wonderful book. Not only is this book a detailed examination of the LTCM story, but as a bonus, it is a wonderful introduction to the instruments that were the tools of the LTCM economists. In a real sense, you cannot have an understanding of the seductiveness of the techniques or an inkling of how the trading/money machine worked and why it collapsed and why the collapse was so shocking to the quants without having the introduction. Insights into cleverness and inventiveness of the mechanisms are a real bonus -- after reading Dunbar you not only feel you have an understanding of the sorry saga, but also an useful badsic understanding of derivatives/swaps/arbitrage devices. Great stuff.

A Great WhoDunnIt Train Reading on Hedge Funds
A summer thriller and great train reading for those interested in war stories in the world of hedge funds.

Dunbar has a novice's eyes, which lends for a fresh look at the world of active asset management and its population.

The book is better than its comparable but more famous "When Genius Failed" by Roger Lowenstein.

Dull, Dull, Dull...
This author took what should have been a fascinating subject and turned it into a boring, long-winded and, for the most part, incomprehensible tome. After having read "When Genius Failed" by Roger Lowenstein, I looked forward to reading Dunbar's book, which I thought would be another informative take on the fiasco. Even in the beginning pages, Dunbar jumped around soooo much, from country to country, from financial discovery to mathematical equasions, from era to era AND from subject to subject that is was just TOO DISTRACTING to be enjoyable. Maybe Wall Street traders or mathematicians would be drawn in by this drivel but I don't think the average reader would be. The biggest disappointment was that Dunbar failed to make even these complex, intense traders interesting! "When Genius Failed" is a far better read. ... Read more

Book Description

In this wide-ranging and perceptive work of cultural criticism, Joseph Heath and Andrew Potter shatter the most important myth that dominates much of radical political, economic, and cultural thinking. The idea of a counterculture -- a world outside of the consumer-dominated world that encompasses us -- pervades everything from the antiglobalization movement to feminism and environmentalism. And the idea that mocking or simply hoping the "system" will collapse, the authors argue, is not only counterproductive but has helped to create the very consumer society radicals oppose.

In a lively blend of pop culture, history, and philosophical analysis, Heath and Potter offer a startlingly clear picture of what a concern for social justice might look like without the confusion of the counterculture obsession with being different.

Book Description

"If a student researcher had only one handbook on their bookshelf, Miller and Salkind's Handbook would certainly have to be it. With the updated material, the addition of the section on ethical issues (which is so well done that I'm recommending it to the departmental representative to the university IRB), and a new Part 4 on "Qualitative Methods", the new Handbook is an indispensable resource for researchers."
--Dan Cover, Department of Sociology, Furman University

" I have observed that most instructors want to teach methodology "their way" to imbue the course with their own approach; Miller-Salkind allows one to do this easily. The book is both conceptually strong (e.g., very good coverage of epistemology, research design and statistics) and at the same time provides a wealth of practical knowledge (scales, indices, professional organizations, computer applications, etc.) In addition, it covers the waterfront of methodology."
--Michael L. Vasu, Director of Information Technology, North Carolina State University

"A unique and excellent reference tool for all social science researchers, and a good textbook for graduate students and senior year undergraduate classes. These students are about to enter the real life of research, and need a handy and comprehensive tool as a starting point that offers shortcuts for getting into real research projects. For a small project, the book offers enough information to get the project started. For big projects, the book is ideal for information on where to look for things and examples."
--Jianhong Liu, Department of Sociology, Rhode Island College

 The book considered a "necessity" by many social science researchers and their students has been revised and updated while retaining the features that made it so useful. The emphasis in this new edition is on the tools graduate students and more advanced researchers need to conduct high quality research.

Features/Benefits:

• Provides step-by-step instruction for students’ research training by beginning with how to find a creative idea, a middle-range theory, and initial hypothesis and proceeds through design, proposal, collection and analysis of data followed by writing, reporting and publication
• Section on scales and indices are organized so that readers can quickly locate and find the type of scale or index in which they may be interested
• All sections are now followed by useful and well-considered reference sections so that readers can read more about each topic
• Includes updated coverage on new scales, internal and external validity, and new analytic techniques with extensive references on each
• Presents extensive coverage of how to prepare manuscripts for publication, including a list of all journals covered by Sociological Abstracts along with the editorial office address and URL for each entry
• Discusses the importance of policy research with presentation and discussion of specific models as an adjunct to both applied and basic research techniques
• Provides extensive coverage of funding opportunities including those offered by the National Institutes of Health, the National Science Foundation, and a directory of private funding sources including relevant contact information 

New to this edition:

• New Part 4 by John Creswell and Ray Maietta provides a comprehensive introduction to qualitative methods including a review of existing computer applications for collecting and analyzing data
• New and more current reviews and commentaries have replaced dated or no longer relevant excerpts
• Thousands of new references on the assessment of important sociological variables as well as references to such topics as statistical analysis, computer applications, and specific topics
• Thoroughly updated information on the use of computers and online research techniques, including beginning and intermediate material about the Internet and its use by the modern research scientist
• Coherent and thoughtful review of the most popular statistical analysis software packages
• New guidelines and discussion of ethical practices in social and behavioral science research, including extensive coverage of institutional review board procedures and activities
• Expansion of social indicators to include international coverage

Plus, there is an extensive and well-organized table of contents with four levels of headings; and, for the first time in the history of the book, a comprehensive index.

Reviews (1)

A must-have book for any serious social science researcher
A wealth of information for both the novice and experienced researcher. The sections on social measurements and indices are most impressive. Excellent resource guide for the serious researcher. ... Read more

Book Description

For the Third Edition, 2001 Nobel laureate Joseph Stiglitz joins forces with new co-author Carl Walsh, who brings both macroeconomic expertise and teaching savvy to the project. Together, Stiglitz and Walsh thoroughly integrate contemporary economics into the traditional curriculum. Since the publication of Economics, Second Edition, in 1997, the explosive development of information technologies has altered the economic landscape in important ways. In Economics, Third Edition, Stiglitz and Walsh embrace the information revolution as an opportunity to revitalize the presentation of economics by linking fundamental concepts and basic models to examples in the "new economy." Supplemented by powerful emedia offerings, outstanding ancillary resources, and comprehensive pedagogy, Economics, Third Edition, promises to be the most complete, authoritative principles package on the market. ... Read more

Reviews (2)

OK, but what's with all the New Economy worship?
Hey, the new Stiglitz text book! I was looking forward to this (I look forward to almost anything from Krugman and Stiglitz), but my impression of this new Stiglitz text is rather negative.

As an introductory text book, it's not bad. Covers all the important points of micro and macro. However, I was rather dissapointed that the text book emphasises "the new economy" caused by IT. It has all these "e-Insights" and "e-Cases" in all of the chapters, to show how IT is affecting the economy in fundamental ways.... only, is it? After the fall of dot.coms in 2000, I would have expected a more reserved approach, to say the least, not just all these IT glorifications. Especially from Stiglitz, the champion of the economics of information, I didn't imagine such "oh the Internet is great" attitude. Such as; "lowering search costs, the Internet holds out the promise of vastly increasing the efficiency of labor markets." (p.313) Really? I thought the lessons of the dot.com crash was that when people say "enormous" or "vastly" about IT benefits, you should ask "how enourmous/vast?" This text book doesn't do that. "Today, with virtually instantaneous information on sales, production and inventories, managers gan fine tune their production levels, avoiding the types of fluctuations seen in the past." (P.777) Theoretically, yes. But that didn't materialize too well, did it. But no comment on that. It devotes significant pages (well, 4, but with so much ground to cover, this is quite a lot to the history of personal computers and the Internet (pp.6-10). Nice story, but how does that tie in to the theme of economics? The book offers no connection! It's supposed to give an overview of the issues in Economics, but it's not a particulary good one (this industry is a bit peculiar, you know.)

I just hope the undergrads using this text book doesn't start another IT bubble.

On the good side, Stiglitz's experience at the World Bank has a lot of positive effect. The parts about development aid and globalization is strong (although short, but hey, this is only introductory). It's readable and understandable (but I'm in Japan; compared to the cranky jargon-laden econ textbooks here, most American textbooks are sweeter than candy). It's treatment of inflation is rather deep, which is nice. Emphasis of the environmental issues are, well, a bit bent toward the "Litany" (see Lomborg "Skeptical Environmentalist" on this), but it's good to see that they are given some explanation.

All in all, it's not as good as I expected, but still very good and strong. I might say that grabbing the 2nd edition (which is getting real [inexpensive] now...) might offer more U (utility) for your buck.

understandable with abundant cases
First of all, cover design and abundant pictures attraced my mind and then I just bought and read through it without special burden. but now I came to know that's really big help for me to understand Economics together with quick real world application.....that's why I'm recimmending this book. buy introduction of modern economic theory is reletavely neglected.........I dare to say. ... Read more

Reviews (3)

GDP Forecast
Chow's prediction (p. 102-3 & 384) that around 2020 China's GDP will be equal to that of the US in PPP terms is based on statistics from a World Bank study. I undertook a study of my own based on figures from the UN Human Development Report.

Here I assume that China's growth rate will be an average of 7% per year until 2020, and America's to be 3.5% per year until 2020. The 7% rate is achievable for China, which managed to maintain more than that in the past two decades (about 8.2% per year from 1975-2001). 3.5% for the USA may be on the high side though (America's annual growth rate: 2.0%, 1975-2001).

Starting from $5.112 trillion in 2001, China will have ballooned to $19.0012 trillion in 2020 (almost 4 times).

In the same period America will have grown steadily from $9.9289 trillion in 2001 to $18.9778 trillion in 2020.

(In 2019, the year before 2020, America will still be some $410 billion larger than China. For those who are curious, by 2025 China's economy will be some $3 trillion larger than that of the US: $25 trillion versus $22 trillion. $3 trillion is a lot of money today - almost the size of Japan's economy - but this is likely to be worth much less in 2025.)

Chow's projection is thus about right. In 2020, China and the US are worth $19 trillion each.

Interestingly, my calculations show that China's economy, valued at $5 trillion in 2000, will be about $10 trillion in 2010, $14 trillion in 2015, then again almost $20 trillion by 2020, and over $25 trillion in 2025 - essentially quintupling over 25 years. (If growing at 10% annually China - or any other country - could expand its economy by a factor of 8 in just 21 years! I think that's what happened to America after 1865.)

The per capita income of an average Chinese should at least quadruple from 2000 to 2025, provided the population growth rate is kept tightly under control. That brings a standard of living on a par with South Korea or Bahamas today. Already China's population growth is among the slowest in the developing world, lower even than America's.

All these figures are in PPP, in constant 2001 dollars. In nominal GDP America will likely remain larger than China long after 2025 unless there are changes in the exchange rates for the dollar and for the Chinese yuan in the meantime, which is possible.

Chow's calculations are thus correct. I've crunched the numbers from a different source and both projections match.

Of course, nothing ever happens exactly as predicted, especially in economics. Linear projections can look foolish in retrospect. Even with the best statistics, every projection can be delayed - or accelerated - by man-made and natural disasters. But this book does give us an idea of China's economic future.

Whether or not China or the US will be the world's largest economy after 2025 will depend on many factors, one of which will be the size and integration of the European Union.

Update suggestions
For the next edition - if there is one - I would like to see Professor Chow discuss at greater length two related issues: trade and currency.

Since the middle of 2003, China has become America's third largest trade partner (America is China's second largest partner), replacing Japan, according to the US Dept of Commerce.

The issue of the renminbi (yuan) is a hot potato in this election year, as many American politicians are clamoring for a "free-floating" of China's currency (as a solution to America's jobless problem, trade deficit, etc.).

Professor Chow needs to deal with this issue. I've heard counter-arguments from some real heavyweights: David Eldon, the Chairman of the global banking giant HSBC, and 2 Nobel Laureates in Economics - Robert Mundell, the world's #1 expert on international currency, and Joseph Stiglitz, the former Chief Economist of the World Bank and Chairman of the President's Council of Economic Advisers. All three point out that fooling around with the renminbi now would destroy the world economy without doing anything to solve America's problems. The editors of Fortune, Forbes, and Business Week agree: Be careful what you wish for, because you may get more than expected.

My guess is, Professor Chow will take these issues apart with the same analytical and keen intelligence he addresses other issues related to China's economic transformation.

Comprehensive Review of China's Economy
Professor Chow is a distinguished economist who is an elected member of the American Philosophical Society and the former chief of econometrics at Princeton University. His statements carry some weight. The key point of this book may be summarized in this sentence: "Hence the Chinese economy can be expected to generate about the same real GDP as the US economy in 1998 PPP terms in 2020." (p.103)

In other words, China will be an economic superpower rivalling America in 20 years' time.

Barring an unforeseen disaster - like an asteroid from outer space or World War III - Chow's prognostication may turn out right. What does that mean? Well, China will be resuming its former position as an economic superpower which it has occupied throughout history.

The most surprising and controversial part is Chow's contention that China's population is too small (chapter 11). He considers a number of factors in making this odd point, including arguments by Malthus and counter-arguments by Mao, as well as a number of intangibles (like the higher number of intellectual elites available from a larger population base). I think he goes wrong here, because he doesn't seem to have considered one serious fact: most of China is neither arable nor habitable - virtually useless - large though the country may be. What's more, the amount of usable land is getting less by the day, due to desertification from the north. China is bone dry.

Customers who are wondering whether this book is worth the price to invest in would do well to reflect on China's importance on the world stage. China is one-fifth of humanity and is exactly equal to America in territorial size. China has the world's third largest stockpile of nuclear warheads. (The Pentagon believes China's stockpile will quadruple in the next decades fully in line with its economic expansion.) China has a highly developed rocket and ballistic missile technology, and has publicly announced its intention to be the world's third nation to launch astronauts into space (to be realized in late 2003). China is one of the top ten oil producing countries, with larger proven crude oil reserves than America's (the largest in the Fast East - much larger than Indonesia's). China's relations with Muslim countries are excellent, and is probably the only major power to be popular among people of that faith. China has the veto on the Security Council. The WTO recently reported that China overtook Britain in 2002 as the world's fifth largest trader in goods and services, after the US, Japan, Germany and France. If the EU is counted as one unit, China is now the fourth largest trader. And according to the CIA World Factbook, China's economy is already the second largest in Purchasing Power Parity (the fifth largest in nominal GDP), and at $6 trillion it is 13% of the world's total.

Now Chow is telling us that China's rapid growth rate is an average of 7% per year for the next two decades, which is by far the fastest among the major powers (about twice India's, three times America's, and more than four-five times Europe's and Japan's).

In short, China is already a giant today (hardly the "modest" country as described by Bill Emmott of the Economist). People like Margaret Thatcher, Jack Welch and Paul Wolfowitz are already predicting China's rise to superpower status. And the economic transformation taking place there, fully and professionally detailed by Chow, will make it much bigger still. On top of all these, China today is also interesting because it is the oldest civilization among the major powers (America, China, Britain, Russia, Germany, Japan) and by far the biggest of the surviving ancient civilizations: Mesopotamia (Iraq), Egypt, Palestine, Persia (Iran), China, India.

Of course, China's per capita income will remain relatively low for the foreseeable future, but given the size of its population China will be a superpower long before it achieves American levels of income and standards of living - a prospect that is beyond the timeframe of this book.

Overall this book is excellent - serious and credible, without being excessively technical. It fills a big niche, and meets the needs of students, journalists, businessmen, Western observers and analysts alike. All of us should pay attention to the most significant event of the late 20th century and early 21st - the transformation of China's economy - and this book is an authoritative guide. It deserves 6 stars out of 5. ... Read more

Book Description

By the successful author of "The Armchair Economist" (a popular trade book that explains basic economics to the general public), this book makes intermediate microeconomics fun and intellectually challenging.The writing style provides an exceptionally friendly and application-rich presentation, combined with a rigorous and careful development of microeconomics theory.All of the standard topics of intermediate price theory are included, as well as many innovative topics, such as alternative normative criteria, efficient asset markets, contestable markets, antitrust law, human capital, demand for public goods, and more.A unique unifying theme of social welfare is used throughout.The inclusion of higher-level mathematics is minimal. ... Read more

Reviews (5)

Excellent book for beginners
This is one of the best books I have ever read. Anyone who is just beginning with microeconomics, should start with this book. It is very simple and goes right to the point.

Very readable and challenging textbook
This is an excellent textbook for any intermediate level price theory or microeconomics course. The author is right when he says beginning students should find it easy to grasp and advanced students will find the material challenging and thought provoking. The portion devoted to a review of elementary topics is small, and I would not recommend this book as an introduction to economics. Any undergraduate who encounters this book should breathe a sigh of relief - it is definitely one of the better texts in the subject. Instructors looking for a good textbook would do well to choose this one.

The "study guide" that is sometimes packaged with the textbook is not entirely useful; the number of problems actually in the textbook should be more than sufficient. Overall, this is a great survey of price theory with Landsburg's signature examples and interesting applications.

I agree! Excellent textbook!
I recommend this book for some undergraduate student to take an intermediate microeconomics! Lucid explanation and some pictures are the finest.His another work, Armchair economist,is also nice. Randsburg did many good jobs!

Excellent text
I have only read two textbooks in my life that I would recommend to the public in general. This is one. If you have never studied economics, start here. Extremely readable. Note in particular the discussion on whether college should be outlawed (Chapter 9, "Knowledge and Information"), the tragic story of Treasury Bill #GS7-2-179-46-6606-1 (Chapter 17, "Allocating Goods over Time") and the Pigs-in-the-Box problem (Chapter 12, "Game Theory"). Don't succumb to the Nash equilibrium! Read Price Theory.

great!!
One of the best books on Price Theory. He really elucidates the subject matter. The questions given at the end of the chapters challenge you to the limit. ... Read more

Amazon.com

The Rule of Three, by Jagdish Sheth and Rajendra Sisodia, offers an innovative take on corporate development that could help leaders put their own operations into a new context that improves competitive strategies and boosts market performance. Sheth and Sisodia, consultants and marketing professors, base it on their contention that just three major players ultimately emerge in all markets--such as ExxonMobil, Texaco, and Chevron in petroleum, and Gerber, Beech-Nut, and Heinz in baby foods. These giant "full-line generalists" are eventually surrounded by smaller "specialists" who successfully concentrate on niche products (such as high-end audio gear) or niche markets (like fashions for professional women), along with midsized "ditch-dwellers" who struggle to reach an audience in between (like second-tier airlines that compete with goliaths on price and regionals on service). The authors examine this pattern of market evolution and the "radical disruption" that can occur when technology or regulation changes or a new entry "succeeds in altering the rules" (as Starbucks did by sneaking up on coffee's Big Three). Appendices present helpful examples of the way this has shaken out in various industries.--Howard Rothman ... Read more

Reviews (3)

Incredible Book for Making Strategic Decisions
This book increases my ability to weigh my competitors in my industry and give me better tools to position my company against my competitors... Read it you will find it interesting or your company in a big ditch...

The best tool to predict a company's future in this economy.
The future looks very uncertain to all of us - no matter what company we are in: big or small, none of us has been spared from this mass anxiety that started in 2001. The old saying 'what goes up must come down' became true after 10 years of the best boom time in America. But will 'things have to eventually turn around' come true? Of course it will, but it would seem that in the process a lot of companies will not survive (as has already been witnessed in the last 2 years). So rather than worrying about when things will turn around, it may be more prudent to focus on figuring out which companies will survive these extremely difficult and trying times.

The book is very deep and I am still in the process of digesting all the material. But I was so moved by the very powerful and sound theory presented in the book that I wanted to share my views immediately and hence this review. So bear with me as the terms I use aren't exactly the ones used in the book. I am using them to help me communicate these ideas faster and more effectively.

This book offers some incredible insight into the fundamental way in which businesses and consumer markets interact. And in the process it provides vital clues that could be used to assess what companies will survive. There are only 8 chapters in this book and a conclusion along with 3 appendices. The first chapter gives some preliminary information on the mechanisms by which consumer markets in free market economies force efficiency increases in the businesses involved. The second chapter addresses the fundamental Rule of Three and why eventually after the dust settles, there can only be three left in an industry - no more and no less.

Chapter 3 broadly categorizes all companies into either Specialists or Generalists and futher defines them into five groups - Full-line Generalists, Portfolio Generalists, Product Specialists, Market Specialists, and Super Nichers. This chapter is especially important as it describes in great detail several of the primary chateristics of both Generalists and Specialists. This is important because it later ties into the successful strategies that must be adopted in order to survive difficult economic times. Chapter 4 shows how companies can get in serious trouble and eventually not survive the difficult times. The authors call this 'The Ditch'.

I wasn't too interested in Chapter 5 which addresses Globalization and the Rule of Three. I still forced myself to read this chapter as I didn't want to miss anything that is used in later chapters. But Chapter 6 and 7 are the ones that everyone has to read! This is where all the secrets lie - the successful strategies one must follow in order to survive this all powerful Rule of Three. Chapter 6 is relevant to the Generalist companies and Chapter 7 is for Specialist companies.

Finally, Chapter 8 introduces the subject of market disruptions - simply speaking how some discontinuous changes in the marketplace (new technologies that can do the same things faster, better, and cheaper - like the Internet) can put someone at immediate risk of failing due to the enormous investment they may already have in terms of time and money in the old technologies.

The authors' conclusion follows these 8 chapters. This is again extremely important as it contains 22 general rules (just a few lines each) that you can't ignore if you are trying to predict where your company future lies. The appendices contain some very good research. For example - the three survivors in all the major industries across the world. As can be expected of a book written by two Ph.D's, there is a very complete reference section at the end of the book where you can check and verify the source data.

There are so many aspects to making a business successful and there are so many books out there on the subject that it is easy to overlook such a critical book as this one. I was fortunate enough to run into this book as a result of my frenzied After Christmas bargain shopping at Amazon where I RANDOMLY selected 30-40 books that were all priced at just a few dollars thinking I can't go wrong even if I find one good book out of three (since the bargain price was a third of the original price). After that it sat on my bookshelf till I recently decided to skim through a few pages of the book. That's when it struck me that this is a landmark book and absolutely essential in predicting the future. I immediately put this book at the top of my reading list and have been devouring it ever since. I consider myself very lucky to find this treasure map of a book. Well, it would be a treasure map only if you are trying to figure out which company is going to survive. Otherwise, you can conveniently skip this book.

Strategic Hypotheses from an Industry Structure Perspective
This book deserves more than five stars.

The Rule of Three is well-documented, easy to read and understand, is filled with practical advice that can be used for many strategic purposes. Regardless of your industry, the size of your business, and your ambitions, you will be well rewarded by the time you spend with this book. It will provide a useful perspective of the sort that you probably have gained from books like The Innovator's Dilemma, The Discipline of Market Leaders, and The New Market Leaders.

For a quick overview of the book, I suggest you begin by reading the clear summary of key points on pages 200-202.

The idea that most industries will eventually be dominated by three broad-scale suppliers with a few profitable specialists was one I first heard from Bruce Henderson, CEO of The Boston Consulting Group, about 1972. My quick look around at the time showed that this pattern did frequently occur (domestic autos, breakfast cereal, and beer came to mind then). This industry structure is more often present now than it was then due to the massive consolidations through acquisitions and business failures that have happened in the United States and world wide. Since learning about the empirical observation, I have usually seen the point applied to the questions of how a market leader could most effectively put pressure on the third largest company in the industry and vice versa. The Rule of Three goes well beyond that scope.

As a result, I was delighted to see that the authors of this fine book have provided extensive empirical documentation of their observations by listing many different industries where this structure occurred, case examples from dozens of old and new industries, and definitions of what can trigger this development. Of particular value to readers will be the detailed descriptions of the strategies that are most likely to succeed and fail, and the most frequent causes of those outcomes.

The detailed observations were usually spot on. I only detected a few places where I disagreed with points that were made. For example, EMC was listed in an appendix as being in the computer peripheral industry along with companies that mostly make PC peripherals. I see EMC as mainly competing instead with the likes of IBM, Hewlett-Packard, Fujitsu, Dell and Storage Networks. The authors also argue that the large general competitors usually enjoy a stock-price multiple over the specialist, niche players who have high returns. I would argue that it is usually just the opposite.

I thought that the problem of the #4, #5, #6 and so forth general suppliers was well described as falling into "the ditch" where the lowest returns on assets are earned. These companies lack the benefits of being a specialist and the scale of being a leader. Often, they succumb. If they can merge to become or join a top company, then the situation may change.

I was pleased to see that the authors described how a company may "change the rules" citing how Starbucks has made progress against the traditional coffee suppliers (Maxwell House, Folger's, and Nestle) by providing more accessible, better quality coffee at a higher price. The main opportunity to strengthen the book would have been to discuss this point with more examples and in more detail.

I also enjoyed the discussion of how specialist companies can be lured into chasing unprofitable market share, and falling by the wayside as a result.

Many authors with an empirical theory like this one would try to avoid talking about situations where one company has almost all the market share (such as occurs in personal computer software), or two companies get almost all the business (as in commercial airframe manufacturers), or even four (as often occurs in Europe and Japan). The authors actually strengthened their main point by examining those exceptions to their rule, and showing the influences that made these results occur.

As someone who is interested in uncontrollable forces that can influence industry structure, I thought that the focus here was good although much simpler than the detailed lists that Professor Michael Porter provides.

Having understood these points, I encourage you to think through how you could use these forces against the current market leaders. As the book suggests, the leaders' efficiencies and size make them vulnerable to nimble competitors offering new business models that serve customers and stakeholders in more ways than by lowering costs. Like the cataclysmic event that killed off the dinosaurs, new business models can doom the existing leaders to being poorly fit for the new environment.

Look for the ultimate competitive advantage!

... Read more

Book Description

The Wealth and Poverty of Nations is David S. Landes's acclaimed, best-selling exploration of one of the most contentious and hotly debated questions of our time: Why do some nations achieve economic success while others remain mired in poverty? The answer, as Landes definitively illustrates, is a complex interplay of cultural mores and historical circumstance. Rich with anecdotal evidence, piercing analysis, and a truly astonishing range of erudition, The Wealth and Poverty of Nations is a "picture of enormous sweep and brilliant insight" (Kenneth Arrow) as well as one of the most audaciously ambitious works of history in decades. ... Read more

Reviews (127)

Diversity is a resource; cultural values matter
Professor Landes has executed a tour de force, a deep, penetrating work that should be required of all college students. He attends to the historic question: Why are some nations so rich and others so poor?

Geography matters, e.g., cold weather countries do economically better than tropical. Climate matters, e.g.,moderate climates are better for growth than are extreme climates. Technology matters e.g., eyeglasses added years to the productive work of skilled crafstment hundrds of years ago. Most of all, culture matters. Landes indirectly yet quite adroitly shows that diversity in all its forms is a resource and that nations benefit from diversity and their other resources in matters of economic and human development if -- perhaps only if -- that nation forges consensus around common values: political and economic freedom; private property and the rule of law; a system of progression and success through merit; and education, training and entrepreneurship.

The anecdotes are plentiful. The data are useful. The scope of the work is incredible. The message is clear and well made. Sure, the most politically correct skeptics will carp. But the world still has not yet witnessed a major economic power between the Tropics of Cancer and Capricorn. A small portion of the world's population produces an abundance of the globe's wealth (and, yes, of course, consumes much