The Undercover Economist

The Undercover Economist, which has sold over a million copies, is widely praised as an excellent resource for understanding the foundational ideas of economics. This fascinating book, which is like an economist's version of The Way Things Work, explains everything from traffic delays to expensive coffee prices. It is equal parts Economics 101 and exposé of the economic concepts that underlie everyday occurrences.

Novel to this version: This revised edition, newly updated to consider the banking crisis and economic turbulence of the last four years, is essential for anyone who has wondered why the gap between rich and poor nations is so great, or why they can't seem to find a decent second-hand car, or how to outwit Starbucks. Tim Harford, a senior writer for the Financial Times, uses his knowledge and perspective to explore how supermarkets, airlines, coffee shops, and other businesses—to mention a few—are draining our bank accounts. He has been to Africa, Asia, Europe, and the United States. Harford dispels the myths surrounding some of the most contentious issues of the day, such as the exorbitant cost of healthcare; he reveals why certain environmental regulations can make a landlord grin; and he clarifies why certain industries can see high profits for seemingly innocent reasons, while in other industries, something evil is occurring.

Harford clarifies how many economic forces—such as limited resources, market power, efficiency, price gouging, market failure, insider knowledge, and game theory—shape our daily lives, often without our awareness. Tim Harford gives us a glimpse into the world of economists, demonstrating how complex games of power, cunning, and negotiation characterize ordinary occurrences. The Undercover Economist is a delightful book that transforms "the dismal science" with a light touch and clever humor.