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Nobel Prize Sees What Market-Fundamentalists Don't

The reality-based community got a little boost recently with the announcement of the 2007 Nobel Prize in economics.

Three Americans, Eric Maskin, Roger Myerson and Leonid Hurwicz, shared the honor for their work in mechanism design theory, which studies under what conditions markets work well or don't. Sneak preview: They do better with private than with public goods.

The very idea that markets are imperfect at some things may come as a shock - or even sacrilege -to true believers in the cult of the market god.