04/18/2010 05:12 am ET Updated May 25, 2011

Michael Skapinker: Business Has Not Yet Found Its Copernicus

Over the past 30 years, business schools taught the virtues of the free market. Academic researchers teased out its characteristics. The market provided consumers with choice and encouraged innovation. The system produced greater prosperity than any seen before. As a paradigm of how to run economies, it appeared to work.

There were anomalies: the market in chief executives did not appear to function. Their remuneration increased no matter how well or badly their companies did.