*Disclaimer: The following is a summary and/or review based on the authors understanding of the book. Also, any possible references should be by default cited to the book under discussion.
Reading economics has become my favourite hobby; make me realise that, as an enthusiastic under-grad, perhaps I should have started reading economics rather than self-help. Especially micro-economics, the social science of decision making. Also, none of these books contain any graphs or equations, a matter that almost killed my love for economics when I first encountered challenging graphs in equations in my MBA textbooks. However, as far as your casual reading is concerned, you can conveniently relish this read over coffee without worrying about calculus.
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This book contains the simplest explanation for the essential microcosmic concepts using the most relatable narratives. Circling back; I wish that I had read this while in my undergrad and with this realisation, this book will now be a recommended read for students in my ‘Business Essentials’ elective. However, even if you have done your MBA or have obtained formal training on economics, this is a nice refresher and helps you understand economics of life – things beyond classroom. In other words, it has the most practical explanation of economics, helping with intuition.
For beginners, this book covers all essential concepts including supply and demand, game theory (my favourite amongst all), compliments and substitutes, pricing along with taste & differentiation, information asymmetry & moral hazards, behaviour incentives, and other sub topics. The coverage is as good as a micro-economics 101 taught in most classrooms; this should not be a surprise as the author is professor of economics at the Virginia Polytechnic Institute and State University.
The narratives are explaining these concepts are examples from many routine dilemmas, making it easy for readers to connect. For example, why nobody ever picks the last slice of pizza, who has what odds at winning the game of chicken, why some choose faith in god over seat belts, why is it important to make packaging and resumes, and many more. Other than such narratives, there are other narratives from social experiments conducted as part of studies – much like other books by economists including Dan Ariely, Abhijit Banerjee, and Richard Thaler.
Overall this is an easy read that you may choose to relish over your evening coffee to lighten your mood after a long day at work. Otherwise, you may even choose to finish this book over to-and-fro domestic flights. And if you are a parent to a teenager or young adult, you should definitely pass this on along with a reward to finish this!
Feature Image Photo by Kelly Sikkema on Unsplash
Savvy Munshi 