The Undercover Economist

Ranked #4,152 in Books, Poetry & Writing, #148,241 overall

The Undercover Economist: An Introduction

The Undercover Economist written by Tim Harford is a delightful pop-economics book. Tim Harford attempts to explain, among other things, why coffee available at the station is more expensive and why you are likely to pay more at a supermarket (see first extract from the book below).



Picture courtesy: Ariel da Silva Parreira

From the book

In the supermarkets we see ... products that seem to be packaged for the express purpose of conveying awful quality. It wouldn't cost much to hire a good designer and print more attractive logos. But that would defeat the objective: the package is carefully designed to put off customers who are willing to pay more. Even customers who would be willing to pay five times as much for a bottle of lemonade will buy the bargain product unless the supermarket makes some effort to discourage them.

The Undercover Economist - Central Theme

If someone were to tell you to read this delightful book on economics that discusses Ricardo's Theory on Rent, I bet - unless you are an economic student - you would not. But that would be a bad decision (not to say of bad marketing). For, Ricardo's Theory explains a whole lot of day to day common place interactions: Who makes money from that expensive coffee you have to buy since you do not have time to look for a cheaper shop? Do high corporate profits mean that customers are being ripped off? Do immigrants take away your job? Which is a good crime model? All this in just the first chapter.
The second chapter is the most immediately applicable. Did you know that if you had the patience you would come out from a supermarket spending a lot less? The second chapter itself will return (and more) your investment on this book.
The Undercover Economist will show you a world that you have taken for granted until now.

From the book

Inside information also means that it is hard to get a decent meal in a tourist trap like London's Leicester Square, Times Square in Manhattan ot the Plaka in Athens. With a few exceptions, the hungry visitor will pay a lot more for mediocre cuisine. Tourists are willing to pay high prices because they have no sense of where better alternatives, even just a few streets away, might be found. ... Good restaurants all locate where they are more likely to be appreciated by more informed locals.

The Undercover Economist - Ratings and Recommendation

Style: Easy read. Reads like a novel.

Knowledge content: You are not likely to become an economist over night. But you will begin to think like one.

Applicability: In some case direct applicability. In other cases, a deeper understanding of world issues, such as globalization.

Recommendation: Get it and read it.

From the book

The train itself was the first clue: it was more comfortable, faster and more punctual than those back in England. China's road and rail network appeared to be in superb condition. Second, the Chinese seemed to have an excellent education system - I was soundly but politely thrashed at chess by a PhD in economics, a young man who has never been outside China but who spoke mildly and thoughtfully in good English.

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