The Inner Lives of Markets Book Summary

In 'The Inner Lives of Markets', Ray Fisman and Tim Sullivan delve into the hidden motivations that drive market behavior, blending economic theories with real-world examples. The authors reveal how individual choices, social norms, and even emotions play pivotal roles in shaping market dynamics. Through gripping anecdotes and insightful analysis, they unravel the intricacies of how markets operate beneath the surface. Readers will discover the surprising intersections between human psychology and economic forces, prompting them to reconsider their understanding of market transactions. This thought-provoking exploration invites anyone interested in economics to ponder: What truly influences the choices we make in the marketplace?

By Ray Fisman, Tim Sullivan

Published: 2016

"Markets are not just numbers on a screen; they are reflections of human emotions, values, and intricate social networks."

Book Review of The Inner Lives of Markets

America's economic revolution isn't just driven by technology. It's about markets. The past twenty-five years have witnessed a remarkable shift in how we get the stuff we want. If you've ever owned a business, rented an apartment, or shopped online, you've had a front-row seat for this revolution-in-progress. Breakthrough companies like Amazon and Uber have disrupted the old ways and made the economy work better—all thanks to technology. At least that's how the story of the modern economy is usually told. But in this lucid, wry book, Ray Fisman and Tim Sullivan show that the revolution is bigger than tech: it is really a story about the transformation of markets. From the auction theories that power Google's ad sales algorithms to the models that online retailers use to prevent internet fraud, even the most high-tech modern businesses are empowered by theory first envisioned by economists. And we're all participants in this revolution. Every time you book a room on Airbnb, hire a car on Lyft, or click on an ad, you too are reshaping our social institutions and our lives. The Inner Lives of Markets is necessary reading for the modern world: it reveals the blueprint for how we work, live, and shop, and offers wisdom for how to do it better.

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Markets are not just numbers on a screen; they are reflections of human emotions, values, and intricate social networks.

The Inner Lives of Markets

By Ray Fisman, Tim Sullivan