If we amplify everything we hear nothing – Jon Stewart.
Author: Tim Harford
This book was recommended to me by my colleague Richard Chin, who is a PHD in economics. Me and Richard were waiting in our café and I started talking about how bad the choices were. At that point he started talking about Undercover Economist.
Have you ever wondered by food in tourist places is horrible or Have you ever wondered why wine is expensive in restaurants? Tim has done amazing job of explaining simple complex and boring economic concepts with simple daily examples.
It took me a while to read this book more because I could not give time to it but it is a great read. If you liked Freakonomics you will love this. I enjoyed second half much more.
Best example discussed in book was on what happened during different government auctions of cellular radio spectrum, i.e., the right to create cellular networks and thus sell phone service to customers. How the auctions were set up played a major role in determining if the auctions were effective in raising revenue for the government. Tim compares the spectrum auctions to auctioning off your house, worth $300,000 and receiving either $3,000 or a whopping $2.3 million. Tim talks about Game theory and how it impacts decision.