The undercover economist

12 Mar
i was in a bookstore in london, desperatly in need for a goodread of my choice, ive ben under the influence of bookclub choices for a while now. so as i normally do, i went to the bestselling novels section and picked the prettiest Asian designed cover, it was a book about an asian guy who lived in western society, typical me.

Last minute i picked a book called “The undercover economist” thought it’d be a nice change since i know next to nothing about economics. finance or related sciences.

it turned out very well, It’s like ECON 101 it lists many basic economics principles in everyday exapmles such as a trip to the supermarket and buying cappuccino basically their goal is to get more money from people willing to pay it, and still sell to others with lower budgets.
some of the interesting facts i learned:
1- why coffee places could sell a cappuccino that costs them less than 2 SR by 15 SR, basically its because they choose locations as a hospital or a college campus and they pay more so they’ll be the only coffe place on the location, so cutomer in need of coffee would pay anything and a 15SR cappuccino would sound reasonable at the time.
2- economy class on airplanes, the dont only make it better by adding previlages to first class but they also make it worse for economy class by making smaller tables and so. so anyone who CAN afford first class wont tolerate it.
3- In tourist cities, they rise prices by 20% and make it cheaper for residents by asking them to create an account and have the store card 20% less, that way its more expensive for rich tourists.
and many more, i recommend 🙂

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2 Responses to “The undercover economist”

  1. wolfshowl March 12, 2010 at 11:36 pm #

    Sounds interesting, along the lines of Freakonomics.

  2. 3bdallah June 28, 2010 at 2:52 pm #

    I’ve been looking for such a book. Thanks for the review. I hope that I can find a copy in Jarir.

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