Business Organization and the Myth of the Market Economy


Business Organization and the Myth of the Market Economy explains the changes in industrial leadership—from Britain to the United States to Japan—in terms of the changing business investment strategies and organizational structures. The author criticizes economists for failing to understand these historical changes. The book shows that this intellectual failure is not inherent in the discipline of economics. Rather, there are important traditions in economic thought that the mainstream of the economics profession has simply ignored.

Praise for Business Organization and the Myth of the Market Economy

"Lazonick successfully marries economic theory to the history of technology and business organization as exemplified in the books of David Landes and Alfred Chandler. He then applies this blend of insights to contemporary issues of economic growth in Japan and the relative decline in Britain and America. The result is a controversial but richly informative analysis. It is hard to think of another scholar who could match the combination of boldness, graceful writing, and intellectual challenge that this book represents."

Thomas K. McCraw, Harvard University

"What makes this an interesting book is Lazonick's unique perspective on the rise and fall of the U.S. economy and the interpretations of it by economists. With the stakes so high, one can only hope that Lazonick's book achieves a wide readership."

Mark S. Mizruchi, Contemporary Sociology

"Lazonick's book is provocative and exceptionally well-written, and its superb survey of the central ideas of prominent economic historians alone makes the book well worth reading."


"An important interpretation of economic development and a recognition that theory must be restructured to understand dynamic processes. For the breadth and significance of the questions, it poses and the answers it gives, this book deserves a wide reading among economists, historians, and other students of social life."

Journal of Economic Literature