John McMillan in his book Reinventing the Bazaar: A Natural History of Markets tackles a simple question how do market form and develop. McMillan hops around many topics and linked them together to form a cohesive story of how markets operate.
This book is not about the question of how markets are designed but addresses the simple question of what makes a market and why are markets so effective at helping with the allocation decisions in an economy.
Matching buyers and sellers, the process of search, is not easy. Central planning has always found that the price discovery in markets and the matching of parties for mutual benefit cannot be just decreed. Still, markets form so that goods are bought and sold, and the right products are gotten into the hands of those who desire them.
Markets, however, are more than just matching. They provide signals about products. It distributed information. Markets help others make better decisions beyond the immediate purchase. In a broad sense, no man is an island. A man's actions help others make better decisions. Nevertheless, rules and regulations are needed to have these markets run efficiently.
The wonders of markets are not always perfect. There are inefficiencies and externalities, but the system works, evolves, and responds to new technology, tastes, and customs. The bazaar is truly a fascinating place.
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