Published in late 2005, The Undercover Economist is a brilliant introduction to economics in the real world. Through the utilisation of a breadth of scenarios the author brings economics from theory to reality and provides us with relatable examples of how economics affects the world around us.
The Undercover Economist answers some of the lingering questions that often occupy our minds such as: why seemingly identical products only differing in packaging are sold at different prices on the same isle of a supermarket, or why some countries are richer than others. Other questions which may not be so obvious are also brought to light and explained using economic theory such as how to design the perfect auction for large government contracts, whilst this may seem unimportant, the reader soon understands the implications of this process and how economics plays a role in ensuring the best outcome for the public interest.
Through a journey of 10 chapters the reader is given a range of insightful topics to think about, beginning with an explanation of why high street coffees cost what they do. Although the topic may sound trivial, Tim Harford uses it to apply David Ricardo’s theory of rent in an informative way. Presented in a light and reader friendly manner, topics such as price elasticity, price discrimination, game theory, moral hazard and adverse selection are some of the topics economics students will be familiar with in an abstract sense but are brought to life by Harford in the Undercover Economist.
Tim Harford, courtesy of ted.com
A potential drawback may arise with the more versed economist who may find issues in some of Harfords more opinionated chapters, where Harford provides his own perspective and solution on issues we face in the modern world. Nevertheless, reading with an open mind can indeed be a good way of broadening one’s own ideas of the challenges we face in the economy today. Another potential drawback is the date the book was written, while 2005 may not seem like too long ago, major turning points in the last 15 years have been excluded such as the aftermath of the financial crisis and the Covid-19 pandemic. Though the reader would benefit from Harfords method in explaining more recent events also, the book still remains very inciteful in a more general sense.
In summary, what is really appealing to the reader is the familiarity brought to economic theories brought by this book. As a student myself it really helped me to broaden my perspective on how economics impacts our daily lives. So, if you are an economics student, take a keen interest in economics or just want a well explained and relatable introduction into the study of economics this book is a great starting point.
Comments