In Discover Your Inner Economist, one of America's most respected economists presents a quirky, incisive romp through everyday life that reveals how you can turn economic reasoning to your advantage—often when you least expect it to be relevant.
Like no other economist, Tyler Cowen shows how economic notions—such as incentives, signals, and markets—apply far more widely than merely to the decisions of social planners, governments, and big business. What does economic theory say about ordering from a menu? Or attracting the right mate? Or controlling people who talk too much in meetings? Or dealing with your dentist? With a wryly amusing voice, in such chapters as "How to Control the World: The Basics" and "How to Control the World: Knowing When to Stop," Cowen reveals the hidden economic patterns behind everyday situations so you can get more of what you really want.
Readers will also gain less selfish insights into how to be a good partner, neighbor, and even citizen of the world. For instance, what is the best way to give to charity? The chapter title "How to Save the World—More Christmas Presents Won't Help" makes a point that is every bit as personal as it is global.
Incentives are at the core of an economic approach to the world, but they don't just come in cash. In fact, money can be a disincentive. Cowen shows why, for example, it doesn't work to pay your kids to do the dishes. Other kinds of incentives—like making sure family members know they will be admired if they respect you—can work. Another nonmonetary incentive? Try having everyone stand up in your next meeting if you don't want anyone to drone on. Deeply felt incentives, like pride in one's work or a passing smile from a loved one, can be the most powerful of all, even while they operate alongside more mundane rewards, such as money and free food.
Discover Your Inner Economist is an introduction to the science of economics that shows it to be built on notions that are already within all of us. While the implications of those ideas lead to Cowen's often counterintuitive advice, their wisdom is presented in ordinary examples taken from home life, work life, and even vacation life. How, for example, do you get a good guide in a Moroccan bazaar?
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"This is the closest thing to economics-as-organizing-life-philosophy that I've read. It was particularly validating to read a book written by somone who obviously thinks about the seemingly trivial (tipping, gift giving, consumption of culture, what to eat in restaurants vs what to make at home) as analytically as I feel I do. There are some bold ideas to be found in here to be sure and I'm going to keep this book at eye level on my bookshelf because I know I will want to reread a chapter at a time. Cowen is an avowed polymath and thus one of the more interesting chapters was on how to become a 'cultural billionaire', that is, how to get the most out of the abundance of culture to be enjoyed in our society. Out of 10 books he picks up, he finishes 1. He'll play games in art museums imagining that he can take home one piece from each room so that his attention remains heightened. He'll go to the multiplex and see bits and pieces of 4 movies in one afternoon. I wasn't surprised in the least that I liked this book so much because this guy writes one of the more interesting economics blogs out there, MarginalRevolution.com."
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carl (5 out of 5 stars)