‘The Undercover Economist’ by Tim Harford

In his innovative, vivid writing style, Tim Harford breaks down the barriers between the ‘dismal science’ and the cocktail of norms and peculiarities that make up everyday life. From the importance of where a coffee shop is situated to pharmaceutical prices for LEDCs, ‘The Undercover Economist’ has it all.

What makes this book so accessible and yet thorough and comprehensive is the connections that Harford creates in the form of cultural and popular references. His comparison of the truth required for a perfectly efficient economy to the film ‘Liar, Liar’ is an example of this integration of economic critique and a captivating element that the reader can relate to.

Harford highlights the fine line between excessive marketing and misleading information that governments and corporations use to improve their image and increase profits. He breaks down the misleading items of the 21st century, from fair-trade coffee to protectionist policy.

One of the most captivating and visible investigations of this book was the pricing of supermarkets. The first myth he tackled was the belief that some supermarkets were excessively more expensive than others. By comparing two perceived opposites, Wholefoods and Safeway, Harford explains that it is not the prices of the same product that results in these perceptions, it is instead the items that the average shopper would buy. Instead, Wholefoods expands its offering to consumers by redefining what basics are

He took this opportunity to explain the practicality of the combination of higher prices and sales in supermarkets to appeal to both price-sensitive and price-blind customers. Shops sticking to the middle of the road year-round fail to attract either customer to its shelves and get squeezed out of the market.

In conclusion, ‘The Undercover Economist’ is an extensive summary of the way that economics touches us on a personal level. Tim Harford’s book will truly change the way you see the World.