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The Undercover Economist

Exposing Why the Rich Are Rich, Why the Poor Are Poor--And Why You Can Never Buy a Decent Used Car!

By Tim Harford

(151)

| Paperback | 9780345494016

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Book Description

“The economy [isn’t] a bunch of rather dull statistics with names like GDP (gross domestic product),” notes Tim Harford, columnist and regular guest on NPR’s Marketplace, “economics is about who gets what and why.” In this acclaimed and riveting book–part exposé, part user’s manual–the astute and entertaining columnist from the Financial Times demystifies the ways in which money works in the world. From why the coffee in your cup costs so much to why efficiency is not necessarily the answer to ensuring a fair society, from improving health care to curing crosstown traffic–all the dirty little secrets of dollars and cents are delightfully revealed by The Undercover Economist.

“A rare specimen: a book on economics that will enthrall its readers . . . It brings the power of economics to life.”
–Steven D. Levitt, coauthor of Freakonomics

“A playful guide to the economics of everyday life, and as such is something of an elder sibling to Steven Levitt’s wild child, the hugely successful Freakonomics.”
–The Economist

“A tour de force . . . If you need to be convinced of the everrelevant and fascinating nature of economics, read this insightful and witty book.”
–Jagdish Bhagwati, author of In Defense of Globalization

“This is a book to savor.”
–The New York Times

“Harford writes like a dream. From his book I found out why there’s a Starbucks on every corner [and] how not to get duped in an auction. Reading The Undercover Economist is like spending an ordinary day wearing X-ray goggles.”
–David Bodanis, author of Electric Universe

“Much wit and wisdom.”
–The Houston Chronicle
From Publishers Weekly
Nattily packaged-the cover sports a Roy Lichtensteinesque image of an economist in Dick Tracy garb-and cleverly written, this book applies basic economic theory to such modern phenomena as Starbucks' pricing system and Microsoft's stock values. While the concepts explored are those encountered in Microeconomics 101, Harford gracefully explains abstruse ideas like pricing along the demand curve and game theory using real world examples without relying on graphs or jargon. The book addresses free market economic theory, but Harford is not a complete apologist for capitalism; he shows how companies from Amazon.com to Whole Foods to Starbucks have gouged consumers through guerrilla pricing techniques and explains the high rents in London (it has more to do with agriculture than one might think). Harford comes down soft on Chinese sweatshops, acknowledging "conditions in factories are terrible," but "sweatshops are better than the horrors that came before them, and a step on the road to something better." Perhaps, but Harford doesn't question whether communism or a capitalist-style industrial revolution are the only two choices available in modern economies. That aside, the book is unequaled in its accessibility and ability to show how free market economic forces affect readers' day-to-day.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
From Bookmarks Magazine
Harford exposes the dark underbelly of capitalism in Undercover Economist. Compared with Steven Levitt’s and Stephen J. Dubner’s popular Freakonomics (*** July/Aug 2005), the book uses simple, playful examples (written in plain English) to elucidate complex economic theories. Critics agree that the book will grip readers interested in understanding free-market forces but disagree about Harford’s approach. Some thought the author mastered the small ideas while keeping in sight the larger context of globalization; others faulted Harford for failing to criticize certain economic theories and to ground his arguments in political, organizational structures. Either way, his case studies—some entertaining, others indicative of times to come—will make you think twice about that cup of coffee.
Copyright © 2004 Phillips & Nelson Media, Inc.

17 Reviews

4 people find this helpful

Very so-so

After reading the Freakonomics, I was having some expectations on these kind of books/topics. However, The Undercover Economist was definitely disappointing. Some of the discussions and topics were food for thought. However, some examples the author cited were not valid. Similarly, some arguments he ... (continue)

After reading the Freakonomics, I was having some expectations on these kind of books/topics. However, The Undercover Economist was definitely disappointing. Some of the discussions and topics were food for thought. However, some examples the author cited were not valid. Similarly, some arguments he raised were *oversimplified* which sounds as naive/invalid/arrogant as the points he wished to attack that I couldn't stop shaking my head. The author also failed to conclude his arguments logically for each chapter. After all, I feel like I was listening to a radio's entertainment programme other than some insights from an economist.

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Richard Yeung said on Aug 24, 2007 | Add your feedback

3 people find this helpful

For those of you who have studied economics in high school and/or university, I wonder whether demand and supply, free lunch, law of diminishing marginal utility etc. still give you nightmares. To me, they still do.
Tim Harford is an economist and in "The Undercover Economist", he tried to us ... (continue)

For those of you who have studied economics in high school and/or university, I wonder whether demand and supply, free lunch, law of diminishing marginal utility etc. still give you nightmares. To me, they still do.
Tim Harford is an economist and in "The Undercover Economist", he tried to use economic theories to explain daily phenomenons. In the chapter "Who Pays For Your Coffee?", he explained why Starbucks can charge exorbitant price for a cup of coffee that costs a fraction to produce: the power of scarcity (of other coffee retailers in a busy location). In another chapter, he pointed out that the US medical insurance system does not work well because lack of perfect information makes the market less efficient.
These are all very basic economic theories. If you have never studied economics before, this is a perfect introductory text for you which is informative, easy to read and fun. For those of us who have some knowledge, it may serve as a revision course.
However, because the phenomenons picked by Tim Harford to investigate (as an undercover economist) are really not that spectacular, and his explanations also do not shed new light, you may find the whole reading experience a little bit disappointing. You may not get much out of it.
The chapter on "Why Poor Countries Are Poor" is the only one that is an eye-opener. I never knew that Cameroon is so poor and its economy is in such dire straits. The author made a forceful argument on why democracy may help pull a country out of poverty, not by way of election, but because of "social capital", "trust", "rule of law" or "institutions" which make those in power care about developing business.

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Tracy W said on Dec 24, 2007 | Add your feedback

2 people find this helpful

Noooo!

Reading this book after The Black Swan by NNT was a mistake. The author obediently illustrated the reason why NNT objects to the abuse of the economics discipline - more often than not, the "armchair detective" approach to identifying causation in real life situations creates misunderstanding and il ... (continue)

Reading this book after The Black Swan by NNT was a mistake. The author obediently illustrated the reason why NNT objects to the abuse of the economics discipline - more often than not, the "armchair detective" approach to identifying causation in real life situations creates misunderstanding and illusions.
The author's "undercover economist" antic is also surprisingly annoying. Yeah economists are so handsome that people would recognize them on the street and so begin to act irrationally. Oh, that's not the case? Then what's the point of going "undercover," except to sound arrogant and incredibly juvenile?
If you want a brief introduction to orthodox economics, read the Wikipedia page. If you want a fun ride through some economists' work, read Freakonomics. Not this one.

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s tsui said on May 11, 2008 | 1 feedback

Brilliant!

harford writes about major world problems with irony applying different economics theories in a brilliant way.
If you think economics is just numbers and percentages... Think again!
Eye-opening

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Matteo said on Jun 21, 2011 | Add your feedback

Nice hands on on Ricardo's theories

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Matteo Brusa said on Jun 13, 2011 | Add your feedback

1 person find this helpful

Though tedious and technical at times, this book does quite a convincing job at arguing how the world's economies should function. Here are the lessons from this book, distilled:
1) Fight scarcity power and corruption
2) Correct externalities
3) Try to maximize information
... (continue)

Though tedious and technical at times, this book does quite a convincing job at arguing how the world's economies should function. Here are the lessons from this book, distilled:
1) Fight scarcity power and corruption
2) Correct externalities
3) Try to maximize information
4) Get the incentives right
5) Engage with other countries
6) Most of all, embrace markets, which do most of the above at the same time.

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Holmes said on Apr 17, 2009 about the Hardcover edition | Add your feedback

See all 17 comments

Book Details

Rating:
(151)
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English Books
Paperback 288 Pages
Edition: Reprint
ISBN-10: 0345494016
ISBN-13: 9780345494016
Publisher: Random House Trade Paperbacks
Pub date: Jan 30, 2007
Dimensions: 1290 mm x 839 mm x 129 mm Just how big is that?
Also available as: Hardcover, Audio CD and eBook
In other languages: other languages 繁體書, 简体书, Libros en Español, 한국 책, Libri Italiani