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Bookshelf Market Survey A master economist, according to John Maynard Keynes, "must contemplate the particu- lar in terms of the general, and touch the abstract and concrete in the same flight of thought." Stanford economist John McMillan realizes this ideal with Reinventing the Bazaar: A Natural History of Markets. Moving with ease between examples and economic theory, he uncovers the fundamental requirements for effective markets. They boil down to mechanisms that support trust, pro- vide security of property rights, facil- itate information flow, curtail exter- nalities, and enhance competition. Serious and important conclusions, yes—but getting there is a pleasure. Along the way, we discover the "Markets are not magic, nor are they immoral. They have impressive achievements; they can also work badly. Whether any particular market works well or not depends on its design." technological sophistication of the wholesale flower market in the Dutch village of Aalsmeer, experience the vibrancy of the Middle Eastern Bazaar in Marrakech, and realize the grand scale of the fish auction in Tsuskiji. We're brought inside McMillan's own consulting and research projects to observe the high-stakes electromagnetic spectrum auction and investigate the secretive dango, price-fixing conspiracies in Japan. We also examine the causes and consequences of corruption in Mobotu's Zaire and Suharto's Indonesia; compare the economic reform experiences of New Zealand, Russia, and China; and much more. Such a world tour would be irrele- vant for the usual abstract treatment of markets by economists. For McMillan, however, place and time are essential. Local histories, cultures, technologies, governments, and firms affect market design, which in turn affects market performance. 54 BizEd NOVEMBER/DECEMBER 2002 the most challenging questions about the role of markets in dealing with controversial issues. How can we make AIDS drugs affordable in developing countries? Can we reduce sulfur dioxide emissions (the main cause of acid rain) without bureau- cratic command and controls? Is it possible to sustain the world's fish- eries? What programs and policies are most effective in lifting millions from poverty? In each case, market solu- tions offer huge potential, but they also create substantial risk if poorly designed and implemented. McMillan demonstrates that mar- McMillan doesn't shy away from The School of the Future The future of management educa- tion is fraught with a variety of perils, not least among them the challenge of offering a relevant cur- riculum to an ever-changing pool of students. To thrive in the upcom- ing decades, business schools will need to develop their own strategic management plans—more likely than not, aimed at serving corporate clients with specific needs. So argues Peter Lorange in his book New Visions for Management Education: Leadership Challenges. He sees the business school of the future as one that must be pioneering, market- oriented, dynamic, and flexible. Moreover, it must work in partner- ship with its primary clients, corpo- rations that send teams of execu- tives back to school as part of their own invest- ment in human capital. Some chal- kets are complex. More important, however, he reminds us that markets are created by humans. In the end, he calls for a pragmatic approach. He writes, "Markets are not magic, nor are they immoral. They have impressive achievements; they can also work badly. Whether any partic- ular market works well or not depends on its design." (W.W. Norton, $25.95) —reviewed by Dan LeClair AACSB International lenges are associ- ated with becom- ing a learning partner with industry, Lorange admits. Schools must make sure they manage the gaps between what they're delivering and what the cus- tomer wants, in terms of relevant content, in the interests of better serving these corporate clients. He points out, "Business issues today tend to be complex, cross-function- al, and cross-disciplinary." Since one of his premises is that business schools must be able to adapt quick- ly to changing market needs, he is in favor of eliminating the tenure sys- tem, which inherently promotes inflexibility.