The book is a study of the emergence of market economy with modern economic institutions in the early civilizations of Mesopotamia and ancient Egypt from the third and early second millennium B.C.E. The study covers the Sumerian, Old Assyrian and Old Babylonian periods. The economic analysis is based on Institutional Economics theory, and the data on the Old Assyrian period is based on the work of many scholars that transliterated, translated and studied many of the 23,000 documents of the Old Assyrian traders found in old Kanesh in Central Turkey.The book includes chapters on the institutions of: property rights; the markets and means of exchange; the organization and finance of trade; and enforcement institutions from the judicial, social and political systems. In addition, it gives a detailed analysis of: the early means of exchange (money) like the use of volume measure of barely and weight measure of copper and silver in Sumer; various instruments establishing property rights such as Kuduru border stones, seals and inserted cones in walls; detailed analysis of the communication system and its components; and the description of the modern financial instruments used to include, for example, limited partnerships.