by Tim Harford
Tim Harford’s The Undercover Economist explores the hidden economic forces that influence everyday life. With an engaging, humorous style, Harford reveals how supply, demand, and scarcity determine the prices of common items, from coffee to real estate.
By highlighting examples like why your morning coffee costs so much or how housing prices soar in crowded cities, Harford illustrates how these economic forces are at work around us, often unnoticed.
He also explains concepts like “price discrimination,” where companies charge different prices based on consumer willingness to pay, and the effect of externalities—costs or benefits affecting bystanders not involved in a transaction.
The book goes beyond basic economics by addressing larger questions, such as why poor countries remain poor and how markets can fail to deliver optimal outcomes.
Harford’s real-life examples make complex theories understandable and show how economic principles apply far beyond the classroom. This book offers an insightful look at how invisible economic forces shape our decisions, making it ideal for readers curious about how economics impacts their lives in practical, often surprising ways.