Famous Fables of Economics critiques some of our most cherished stories of market failure.

Famous Fables of Economics critiques some of our most cherished stories of market failure.

"I had the good fortune to grow up in a wonderful area of Jerusalem, surrounded by a diverse range of people: Rabbi Meizel, the communist Sala Marcel, my widowed Aunt Hannah, and the intellectual Yaacovson. As far as I'm concerned, the opinion of such people is just as authoritative for making social and economic decisions as the opinion of an expert using a model." Part memoir, part crash-course in economic theory, this deeply engaging book by one of the world's foremost economists looks at economic ideas through a personal lens. Together with an introduction to some of the central concepts in modern economic thought, Ariel Rubinstein offers some powerful and entertaining reflections on his childhood, family and career. In doing so, he challenges many of the central tenets of game theory, and sheds light on the role economics can play in society at large. Economic Fables is as thought-provoking for seasoned economists as it is enlightening for newcomers to the field.

In this imaginative and illuminating work, Annabel Patterson traces the origins and meanings of the Aesopian fable, as well as its function in Renaissance culture and subsequently. She shows how the fable worked as a medium of political analysis and communication, especially from or on behalf of the politically powerless. Patterson begins with an analysis of the legendary Life of Aesop, its cultural history and philosophical implications, a topic that involves such widely separated figures as La Fontaine, Hegel, and Vygotsky. The myth’s origin is recovered here in the saving myth of Aesop the Ethiopian, black, ugly, who began as a slave but become both free and influential, a source of political wisdom. She then traces the early modern history of the fable from Caxton, Lydgate, and Henryson through the eighteenth century, focusing on such figures as Spenser, Sidney, Lyly, Shakespeare, and Milton, as well as the lesser-known John Ogilby, Sir Roger L’Estrange, and Samuel Croxall. Patterson discusses the famous fable of The Belly and the Members, which, because it articulated in symbolic terms some of the most intransigent problems in political philosophy and practice, was still going strong as a symbolic text in the mid-nineteenth century, where it was focused on industrial relations by Karl Marx and by George Eliot against electoral reform.

For Western economists and journalists, the most distinctive facet of the post-war Japanese business world has been the keiretsu, or the insular business alliances among powerful corporations. Within keiretsu groups, argue these observers, firms preferentially trade, lend money, take and receive technical and financial assistance, and cement their ties through cross-shareholding agreements. In The Fable of the Keiretsu, Yoshiro Miwa and J. Mark Ramseyer demonstrate that all this talk is really just urban legend. In their insightful analysis, the authors show that the very idea of the keiretsu was created and propagated by Marxist scholars in post-war Japan. Western scholars merely repatriated the legend to show the culturally contingent nature of modern economic analysis. Laying waste to the notion of keiretsu, the authors debunk several related “facts” as well: that Japanese firms maintain special arrangements with a “main bank,” that firms are systematically poorly managed, and that the Japanese government guided post-war growth. In demolishing these long-held assumptions, they offer one of the few reliable chronicles of the realities of Japanese business.