"In this groundbreaking book, Rilinger reveals the complex dynamics of markets, organizations, and technological innovation that are behind the regulation of commerce in this digital age. A large literature exists on systemic failures, breakdowns, accidents, and mistakes as well as a literature on market failure and financial crises. However, Rilinger is the first to expose failure as a “failure by design.” He reveals market design as a novel multi-dimensional organizational form with its own structures, processes, and socio-technical-economic concepts. Further, the book goes beyond anything yet published in the now-burgeoning literature about infrastructure, algorithms, and platforms. Failure by Design is a significant achievement, a comprehensive, analytically wise, exciting work that sets a new direction for understanding organizations in a changing society."
— Diane Vaughan, Columbia University
"Failure by Design stems from a brilliant observation: modern markets are less likely to emerge from spontaneous social processes than from the conscious but contradictory intentions of economists, engineers, and stakeholders. Sometimes these designs fail catastrophically, as in the California electricity market. This supremely elegant and deeply original book explains why, making it one of the most essential contributions to political economy to come out in decades."
— Marion Fourcade, author of 'Economists and Societies' and 'The Ordinal Society'
"This is a terrific book about a famous economic disaster. Failure by Design offers many lessons, and Rilinger takes full advantage studying the market design choices that helped produce California’s energy crisis. Rather than round up usual suspects like Enron, Rilinger studies the experts, administrators, politicians, regulators, and industry participants who remade energy infrastructure as a carefully designed market. Based on deep research, this book’s lively prose offers rich insights and sophisticated analysis. It is an intellectual pleasure to read."
— Bruce G. Carruthers, Northwestern University