A central concern of economics is how society allocates its resources. Modern economies rely on two institutions to allocate: markets and governments. But how much of the allocating should be performed by markets and how much by governments? This collection of readings will help students appreciate the power of the market. It supplements theoretical explanations of how markets work with concrete examples, addresses questions about whether markets actually work well and offers evidence that supposed 'market failures' are not as serious as claimed.Featuring readings from Hayek, William Baumol, Harold Demsetz, Daniel Fischel and Edward Lazear, Benjamin Klein and Keith B. Leffler, Stanley J. Liebowitz and Stephen E. Margolis, and John R. Lott, Jr., this book covers key topics such as: why markets are efficient allocators; how markets foster economic growth; property rights; how markets choose standards; asymmetric Information; whether firms abuse their power; non-excludable goods; and monopolies. The selections should be comprehended by undergraduate students who have had an introductory course in economics. This reader can also be used as a supplement for courses in intermediate microeconomics, industrial organization, business and government, law and economics, and public policy.

剋萊格·M.紐馬剋(Craig M．Newmark)是美國北卡羅來納州立大學副教授，主要研究美國反壟斷政策，曾在《政治經濟學雜誌》、《法和經濟學雜誌》、《經濟學與統計學評論》，以及其他學術期刊上發錶過文章。他為研究生教授微觀經濟學和經濟學寫作方麵的課程，還為本科生講授一門資本主義道德基礎方麵的課程。