![Amazon prime logo](https://cdn.statically.io/img/m.media-amazon.com/images/G/01/marketing/prime/new_prime_logo_RGB_blue._CB426090081_.png)
Enjoy fast, free delivery, exclusive deals, and award-winning movies & TV shows with Prime
Try Prime
and start saving today with fast, free delivery
Amazon Prime includes:
Fast, FREE Delivery is available to Prime members. To join, select "Try Amazon Prime and start saving today with Fast, FREE Delivery" below the Add to Cart button.
Amazon Prime members enjoy:- Cardmembers earn 5% Back at Amazon.com with a Prime Credit Card.
- Unlimited Free Two-Day Delivery
- Streaming of thousands of movies and TV shows with limited ads on Prime Video.
- A Kindle book to borrow for free each month - with no due dates
- Listen to over 2 million songs and hundreds of playlists
- Unlimited photo storage with anywhere access
Important: Your credit card will NOT be charged when you start your free trial or if you cancel during the trial period. If you're happy with Amazon Prime, do nothing. At the end of the free trial, your membership will automatically upgrade to a monthly membership.
Buy new:
-54% $8.82$8.82
Ships from: Amazon.com Sold by: Amazon.com
Save with Used - Good
$7.94$7.94
Ships from: Amazon Sold by: Martistore
Learn more
1.27 mi | ASHBURN 20147
Returnable | Yes |
---|---|
Resolutions | Eligible for refund or replacement |
Return Window | 30 days from delivery |
Refund Timelines | Typically, an advance refund will be issued within 24 hours of a drop-off or pick-up. For returns that require physical verification, refund issuance may take up to 30 days after drop-off or pick up. Where an advance refund is issued, we will re-charge your payment method if we do not receive the correct item in original condition. See details here. |
Late fee | A late fee of 20% of the item price will apply if you complete the drop off or pick up after the ‘Return By Date’. |
Restocking fee | A restocking fee may apply if the item is not returned in original condition and original packaging, or is damaged or missing parts for reasons not due to Amazon or seller error. See details here. |
Return instructions
Item must be in original condition and packaging along with tag, accessories, manuals, and inserts. Unlock any electronic device, delete your account and remove all personal information. |
Returnable | Yes |
---|---|
Resolutions | Eligible for refund or replacement |
Return Window | 30 days from delivery |
Refund Timelines | Typically, an advance refund will be issued within 24 hours of a drop-off or pick-up. For returns that require physical verification, refund issuance may take up to 30 days after drop-off or pick up. Where an advance refund is issued, we will re-charge your payment method if we do not receive the correct item in original condition. See details here. |
Late fee | A late fee of 20% of the item price will apply if you complete the drop off or pick up after the ‘Return By Date’. |
Restocking fee | A restocking fee may apply if the item is not returned in original condition and original packaging, or is damaged or missing parts for reasons not due to Amazon or seller error. See details here. |
Return instructions
Item must be in original condition and packaging along with tag, accessories, manuals, and inserts. Unlock any electronic device, delete your account and remove all personal information. |
![Kindle app logo image](https://cdn.statically.io/img/m.media-amazon.com/images/G/01/kindle/app/kindle-app-logo._CB668847749_.png)
Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required.
Read instantly on your browser with Kindle for Web.
Using your mobile phone camera - scan the code below and download the Kindle app.
The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street Paperback – February 8, 2011
Purchase options and add-ons
“Do we really need yet another book about the financial crisis? Yes, we do—because this one is different….A must-read for anyone who wants to understand the mess we’re in.”
—Paul Krugman, New York Times Book Review
“Fox makes business history thrilling.”
—St. Louis Post-Dispatch
A lively history of ideas, The Myth of the Rational Market by former Time Magazine economics columnist Justin Fox, describes with insight and wit the rise and fall of the world’s most influential investing idea: the efficient markets theory. Both a New York Times bestseller and Notable Book of the Year—longlisted for the Financial Times Business Book of the Year Award and named one of Library Journal Best Business Books of the Year—The Myth of the Rational Market carries readers from the earliest days of Wall Street to the current financial crisis, debunking the long-held myth that the stock market is always right in the process while intelligently exploring the replacement theory of behavioral economics.
- Print length416 pages
- LanguageEnglish
- Publication dateFebruary 8, 2011
- Dimensions5.31 x 0.94 x 8 inches
- ISBN-109780060599034
- ISBN-13978-0060599034
Books with Buzz
Discover the latest buzz-worthy books, from mysteries and romance to humor and nonfiction. Explore more
![iphone with kindle app](https://cdn.statically.io/img/m.media-amazon.com/images/G/01/kindle/dp/nfcx/PersistentWidget-Ruby-Large._CB485955431_.png)
Explore your book, then jump right back to where you left off with Page Flip.
View high quality images that let you zoom in to take a closer look.
Enjoy features only possible in digital – start reading right away, carry your library with you, adjust the font, create shareable notes and highlights, and more.
Discover additional details about the events, people, and places in your book, with Wikipedia integration.
Frequently bought together
![The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street](https://cdn.statically.io/img/images-na.ssl-images-amazon.com/images/I/71sjXto2OgL._AC_UL116_SR116,116_.jpg)
Similar items that may ship from close to you
- The Misbehavior of Markets: A Fractal View of Financial TurbulencePaperbackFREE Shipping on orders over $35 shipped by AmazonGet it as soon as Wednesday, Jul 31
- Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets (Incerto)PaperbackFREE Shipping on orders over $35 shipped by AmazonGet it as soon as Wednesday, Jul 31
- Devil Take the Hindmost: A History of Financial SpeculationPaperbackFREE Shipping on orders over $35 shipped by AmazonGet it as soon as Wednesday, Jul 31
- Boom and BustWilliam QuinnPaperbackFREE Shipping on orders over $35 shipped by AmazonGet it as soon as Wednesday, Jul 31
- The Price of Time: The Real Story of InterestHardcoverFREE Shipping on orders over $35 shipped by AmazonGet it as soon as Wednesday, Jul 31
- This Time Is Different: Eight Centuries of Financial FollyPaperbackFREE Shipping on orders over $35 shipped by AmazonGet it as soon as Wednesday, Jul 31
Editorial Reviews
Review
“Do we really need yet another book about the financial crisis? Yes, we do ― because this one is different. Fox’s book is not an idle exercise in intellectual history, which makes it a must-read for anyone who wants to understand the mess we’re in.” — Paul Krugman, New York Times Book Review
“Justin Fox is a truly insightful fellow who can see things with his own eyes―a rare, very rare attribute.” — Nassim Nicholas Taleb, author of The Black Swan
“A fascinating historical narrative.” — Roger Lowenstein, The Washington Post
“This wise and witty book is must reading for anyone who wonders what makes financial markets tick. Even those who have wrestled with this question for years will be glad to have read Fox’s compelling history.” — Peter Bernstein, author of Against the Gods: The Remarkable Story of Risk
“His analysis is singularly compelling, and the rare business history that reads like a thriller... A must-read for anyone interested in the markets, our economy or government, this dense but spellbinding work brings modern finance and economics to life.” — Publishers Weekly (starred review)
“A lucid, lively and learned account.” — Barron's
“Fox makes business history thrilling.” — St. Louis Post-Dispatch
“Impressively broad and richly researched.” — Financial Times
“...a rich history of the world’s most seductive investing idea...the book chronicles the rise of rational market theory over the decades and captures the sizzle and pop of the intellectual debate ...” — Bloomberg
“Good wonky fun.” — Barry Ritholz, The Big Picture blog
“An intellectual tour-de-force...” — The Economist
“Superbly accurate and readable... Clearly the result of many years of research and reading,... it is a model of what the popularization of social science can be, but too rarely is, and it will continue to be read when the current crisis is many years behind us.” — American Scientist
“A tough, tasty steak of a book.” — Dan Neil, Los Angeles Times
“A thoughtful, often fascinating, always illuminating history of the idea of market rationality.” — Cory Doctorow, boingboing.net
From the Inside Flap
The financial crisis of 2008 and subsequent Great Recession demolished many cherished beliefs--most significantly, the theory that financial markets always get things right. Justin Fox's The Myth of the Rational Market explains where that idea came from, and where it went wrong. As much an intellectual whodunit as a cultural history of the perils and possibilities of risk, it also brings to life the people and ideas that forged modern finance and investing--from the formative days of Wall Street through the Great Depression and into the financial calamities of today. It's a tale featuring professors who made and lost fortunes, battled fiercely over ideas, beat the house at blackjack, wrote bestselling books, and played major roles on the world stage. It's also a story of free-market capitalism's war with itself.
--Barron'sFrom the Back Cover
The financial crisis of 2008 and subsequent Great Recession demolished many cherished beliefs—most significantly, the theory that financial markets always get things right. Justin Fox's The Myth of the Rational Market explains where that idea came from, and where it went wrong. As much an intellectual whodunit as a cultural history of the perils and possibilities of risk, it also brings to life the people and ideas that forged modern finance and investing—from the formative days of Wall Street through the Great Depression and into the financial calamities of today. It's a tale featuring professors who made and lost fortunes, battled fiercely over ideas, beat the house at blackjack, wrote bestselling books, and played major roles on the world stage. It's also a story of free-market capitalism's war with itself.
About the Author
Justin Fox is editorial director of the Harvard Business Review Group, and a contributor to Time magazine and PBS's Nightly Business Report. Previously, he was a columnist at Time and an editor and writer at Fortune. He lives in Cambridge, Massachusetts, with his wife and son.
Product details
- ASIN : 0060599030
- Publisher : Harper Business; Reprint edition (February 8, 2011)
- Language : English
- Paperback : 416 pages
- ISBN-10 : 9780060599034
- ISBN-13 : 978-0060599034
- Item Weight : 11.2 ounces
- Dimensions : 5.31 x 0.94 x 8 inches
- Best Sellers Rank: #806,626 in Books (See Top 100 in Books)
- #764 in Theory of Economics
- #1,141 in Stock Market Investing (Books)
- #1,634 in Economic History (Books)
- Customer Reviews:
About the author
![Justin Fox](https://cdn.statically.io/img/m.media-amazon.com/images/I/31Vr67N1UAL._SY600_.jpg)
Justin Fox is a columnist for Bloomberg Opinion and a contributor to Bloomberg Businessweek.
He was previously editorial director of Harvard Business Review Group, the business and economics columnist at Time magazine, and a writer and editor at Fortune magazine. He is married and has a son, and lives in Manhattan.
Fox's first book, 'The Myth of the Rational Market,' is a history of the rise and fall of the efficient market hypothesis — the influential academic theory that financial markets are nearly perfectly rational and correct. It was the Amazon.com editors' choice as the Best Business Book of 2009 and was a New York Times Notable Book of 2009.
Customer reviews
Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.
To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.
Learn more how customers reviews work on AmazonCustomers say
Customers find the book well-researched with useful references. They also describe the book as well-written, simple, and entertaining. Readers say it's worth reading and the story is well-told.
AI-generated from the text of customer reviews
Customers find the book well organized, with useful references. They also say it provides a fascinating background and history of Wall Street. Readers also say the book provides enlightening reviews of various economic and market theories. They say it's an excellent tool for business students and a candid history of men and money.
"...These questions and many more are examined in this urbane, candid history of men and money...." Read more
"...This book is an excellent tool for business students because it includes the background stories of how stock market principles were crafted to..." Read more
"...His research is impeccable and he highlights all the major players; Black, Fisher, Friedman, Keynes, Modigliani and Buffett, as well as a large..." Read more
"...The Introduction captures the reader's immediate attention, as it sets the stage for the book in relevant context by discussing the recent collapse..." Read more
Customers find the book well-written, easy to read, and well-structured. They also say the author did a great job compiling and assembling the history.
"...Great read, drills down relentlessly into the annals of time and pressure and personalities and opportunities and Other People's Money, to come up..." Read more
"...It was extremely convenient to have so many topics covered in one book...." Read more
"...An outstanding book and a great read filled with notes for further study for those of us who got curiouser and curiouser......." Read more
"...Fox's book seemed to jump, rather chaotically at times, from one side of the country to the next and from one time to another, when presenting the..." Read more
Customers find the book entertaining and useful. They also say it's worth reading.
"...An outstanding book and a great read filled with notes for further study for those of us who got curiouser and curiouser......." Read more
"...It was simple, entertaining and educational. I finally understood a lot of what has gone on in the world of Fannie Maes and Freddie Macs...." Read more
"This book is outstanding!My father was financial VP for a large firm. I am a physicist...." Read more
"...fairly pleasant; it wasn't too boring, in fact at times it was somewhat entertaining, and it didn't seem to require an extensive understanding of..." Read more
Customers find the story well-told, and say it reads like a good detective story. They also say it provides a complete story of the market.
"...is an excellent tool for business students because it includes the background stories of how stock market principles were crafted to comprehend the..." Read more
"...The man is truly a brilliant writer and a gifted storyteller...." Read more
"...Overall, this book is a decent book. It provides a deep and structured story of Wall Street...." Read more
"...The book does give a rather complete story of the market, but should only be read by intellectuals wanting to further their knowledge of the market." Read more
Customers find the book bogs down quickly, making it hard to follow the chronology of events and theories evolving. They also mention that the book has jarring jumps between time periods within chapters.
"...It became a little frustrating and I don't think I could recommend it to the casual reader...." Read more
"...In addition, the timeframe jumped around without consistency or jumped out of the chronological order...." Read more
"...This can lead to jarring jumps between time periods within chapters and the reader suspects that important topics are being missed...." Read more
"...Especially in the first four chapters it is are hard to follow the chronology of events and theories evolving...." Read more
-
Top reviews
Top reviews from the United States
There was a problem filtering reviews right now. Please try again later.
These questions and many more are examined in this urbane, candid history of men and money. Fox navigates the troubled waters of the Street and the Academy with skill, giving credit where it is due but not hesitating to point out the Emperor's knickers around his royal ankles. The only disappointment to me was the discovery that there is no method of stock valuation for the side of the argument which maintains the irregularity of the market; there is no Black&Scholes for the unbeliever. But maybe that fact is indicative of the truth that, in the end, you really do have to choose between precise ambiguity and vague truth.
And this book whispers an unsettling memento mori into the ear of the aspiring business leader: it doesn't matter which lens you choose, because in the end the view is the same through both of them...
Great read, drills down relentlessly into the annals of time and pressure and personalities and opportunities and Other People's Money, to come up with timeless observations about finance and philosophy.
JV
The book introduces an extensive list of characters in the aforementioned evolution including Kenneth Arrow, Louis Bachelier, Fisher Black, Warren Buffet, Eugene Fama, Michael Jensen, and Harry Markowitz. All of these characters are linked together to give the reader a full understanding of how one individual's accomplishments are connected to another's, and the impact these associations generated for the market. The principles involved are still used by individual investors and market managers today, and will most likely be the foundation for future students' theories. It was extremely convenient to have so many topics covered in one book.
Since recently purchasing my first a home, I found the background of the Case-Shiller indices particularly interesting. Fox explained that Jeremy Siegel and Robert Shiller met in line waiting for their physicals when they arrived for graduate school at MIT in 1968. After the 1987 crash, Shiller worked with Karl Case to determine if real estate was prone to bubbles. The result of this research is now a comprehensive data series of indicators on home prices in America. As a business student, it is interesting to read cases where chance and networking link to create great rewards in a certain field of individual students. Fox's book is filled with stories of people determining a great idea after a car ride, or at a dinner party, or at a conference, and it makes the history of the market educating and interesting.
Personally, one of the rewards I experienced from reading this book was having a general understanding of key economists, and being able to remember their respective accomplishments. For example, I watched CNBCs special "Warren Buffet and Bill Gates" where they spoke to Columbia graduate students on the state of the U.S. economy. Warren Buffet many times mentioned the lessons he learned from Benjamin Graham. From reading this book, I understood that Ben Graham was Mr. Buffet's mentor and part of his success was based on structuring his investment business as a partnership. In addition, I ascertained that Ben Graham was one of the first to use and write about arbitrage in Magazine of Wall Street. His ability to, "find the same thing selling at different places, buy it at the low price and sell at the high price," can make people very rich. These practices that are now used daily each has its own roots, and Justin Fox's book enables readers to better understand their environment.
The news this past year has highlighted numerous unethical leaders and companies who have gone bankrupt. I enjoyed that the book had a couple of chapters concentrating on what drives CEOs, and how greed for higher salaries and earnings can and cannot affect stock prices. In addition, it detailed how stock prices can be manipulated to give a different perception of a company. I think these concepts and maneuvers are important to study, especially when the end result can create a multitude of negative repercussions. Michael Jensen's model of corporate behavior was explained in this book, including what he believed was missing from his initial model- "integrity and honoring your world." Jensen mentioned that leaders need to honor their promises and commitments, acknowledge failure, and clean up messes. That concept in the book could be applied to assist individuals in various business situations. I understand that many tools are available to better understand the market and make stock prices correctly correlate with businesses' profitability. However, if used without integrity, more harm than good will be done for the stock market, investors, the company, and the economy. Overall, I learned a great deal from Justin Fox's book and would recommend the book be used in MBA classroom settings. I also believe many individuals working in the financial market would enjoy this book, especially the last couple of sections, where many key economists reflect on our current financial situation.
My naivete opened the world to a new way of viewing the markets and their behavior.
Author Justin Fox let's it be known that he is a journalist but his humility is just that. The man is truly a brilliant writer and a gifted storyteller.
What do you take away from the book that is largely a 20th century history of the academic minds that fueled our beliefs about the markets?
First is that the struggles that you and I have with just how efficient or not the market is...is something that all the great minds struggle with. Don't worry you won't walk away with the belief that the markets are indeed rational. But you'll sense the arguments that the markets do discount a lot of information is correct. Of course...the there are the exceptions which more than shine in the conclusion that the markets are not rational.
If that analysis isn't crystal it's because the waters are murky even in the minds of those who have studied it and lived it for decades on end.
Second takeaway? Stability breeds instability. Markets that are stable, are trending nicely are preparing the way for a disaster. Now WHEN will that disaster hit? You don't always know that of course but THIS conclusion was a wake up call.
Third? Shiller's study on home prices dating back a century show that adjusted for inflation...housing may not be the great investment waiting to happen again...that you might wish it would be... (My conclusion)
Fourth? Keynes wrote at one point that keeping interest rates artificially low perhaps could keep markets in a perpetual bubble that won't break so why not? (My conclusion to this rather stunning paraphrase? Step out of the way when that explosion occurs...Keynes is wrong.)
There are hundreds of grand nuggets buried within this brilliantly told story of Wall Street being studied and taught at University.
An outstanding book and a great read filled with notes for further study for those of us who got curiouser and curiouser....
Kevin Hogan
Author of:
The 168 Hour Week: Living Life Your Way 24-7
Top reviews from other countries
![](https://images-eu.ssl-images-amazon.com/images/S/amazon-avatars-global/default._CR0,0,1024,1024_SX48_.png)
"Investment advisor" industry that preyed on the unsuspecting masses.
Niels Bohr, Nobel prize winner once said "Making predictions is very difficult, especially when it concerns the future".
Bohr had a grim sense of humour. If you cannot predict the future (and you cannot), then you cannot predict the future with Math. QED.
There is just one omission in this otherwise outstanding book. In the chapter dealing with the 2007-2008 crash, there is no mention of those who did warn about the overheated market and the dangers of a crash. They include Peter Drucker, Anne Pettifor, Steve Keen, Dean Baker, Raghuram Rajan, Peter Schiff and others. One wonders why they were omitted.
![](https://images-eu.ssl-images-amazon.com/images/S/amazon-avatars-global/default._CR0,0,1024,1024_SX48_.png)
![](https://images-eu.ssl-images-amazon.com/images/S/amazon-avatars-global/default._CR0,0,1024,1024_SX48_.png)
![](https://images-eu.ssl-images-amazon.com/images/S/amazon-avatars-global/default._CR0,0,1024,1024_SX48_.png)
Non è molto scorrevole.
![](https://images-eu.ssl-images-amazon.com/images/S/amazon-avatars-global/658e2890-7091-44a7-b91d-22cc232ab264._CR0,0,406,406_SX48_.png)
"When I set out to write this book, I didn't have a particular ideological axe to grind about efficient markets. Sure, I had my biases (cognitive and otherwise), but I was mainly interested in reporting and telling a story."
Justin Fox ist es besser als Tacitus in den Annalen gelungen diesem Motto tatsächlich treu zu bleiben.
Er schildert die Geschichte, die innere Logik der Mainstream Ökonomie und die Motife der handelnden Personen der letzten 100 Jahre. Der Autor ist - wie er selbst betont - gelernter Journalist und nicht Wissenschafter. Er kann schreiben. Er hat aber auch ausreichendes Fachwissen und kennt aus persönlicher Erfahrung die Branche. Journalisten neigen dazu einen Sachverhalt in Gschichtln aufzulösen und sich selbst in den Mittelpunkt zu stellen. Fox erzählt auch Geschichten, aber sie werden nie zum reinen Selbstzweck. Er hält auch sein Ego angenehm im Hintergrund.
Die herrschende Ökonomie ist die Ökonomie der Herrschenden. Der Autor verlässt dieses Terrain nicht. Er hat auch nicht den Anspruch derartiges zu leisten. Er beschreibt aber dieses abgesteckte Terrain sehr gut. Es war ein Vergnügen dieses Buch zu lesen.