Bayesian Investor Blog

Ramblings of a somewhat libertarian stock market speculator

Undercover Economist

Posted by Peter on September 3, 2006
Posted in: Book Reviews, Economics. Tagged: climate, information economics.

Book review: The Undercover Economist: Exposing Why the Rich Are Rich, the Poor Are Poor–and Why You Can Never Buy a Decent Used Car! by Tim Harford
This book does an excellent job of describing economics in a way that laymen can understand, although experts won’t find much that is new in it.
Harford’s description of price discrimination is the best I’ve seen, and the first to describe how to tell the extent to which an instance of price discrimination has good effects (the extent to which it expands the number of sales).
His arguments that globalization reduces pollution are impressive for most types of pollution, but for carbon dioxide emissions I’m very disappointed. He hopes that energy use has peaked in the richest countries because he’s failed to imagine what will cause enough increased demand to offset increases in efficiency. For those of modest imagination, I suggest thinking about more realistic virtual reality (I want my Holodeck), personal robots, and increased air conditioning due to people moving to bigger houses in warmer climates. For those with more imagination, add in spacecraft and utility fog.
Some small complaints:
He refers to Howard Schultz as the owner of Starbucks, but he only owns about 2 percent of Starbucks’ stock.
His comment that Amazon stock price dropped below its IPO price fails to adjust for stock splits – a share bought at $18 in 1997 would have become 12 shares worth $8 each in the summer of 2001.
His claim that “Google is the living proof that moving first counts for nothing on the Internet” is a big exaggeration. It’s quite possible that Google success was primarily due to being the first to reach some key threshold of quality, and that many small competitors have matched its quality without taking measurable business away from it.

Posts navigation

← Time
A Stock with a Strange Price History →
  • Recent Posts

    • The Ageless Brain
    • AI 2027 Thoughts
    • Should AIs be Encouraged to Cooperate?
    • Rain of Tariffs
    • Notes from the TRIIM-X Clinical Trial
    • AI Markets on Manifold
    • Retrospective on my Investing Advice
    • Medical Windfall Prizes
  • Recent Comments

    • The Ageless Brain | Bayesian Investor Blog on The End of Alzheimer’s
    • AI 2027 Thoughts | Bayesian Investor Blog on AI Fire Alarm Scenarios
    • Notes from the TRIIM-X Clinical Trial | Bayesian Investor Blog on True Age
    • Bruce Smith on Retrospective on my Investing Advice
    • Retrospective on my Investing Advice | Bayesian Investor Blog on Advice for Buy-and-Hold Investors
  • Tags

    aging amm autism best posts bias brain bubbles CFAR climate communication skills consciousness covid diet effective altruism empires equality ethics evolution existential risks genetics happiness history honesty industrial revolution information economics IQ kelvinism law macroeconomics meditation mind uploading MIRI neuroscience prediction markets prizes psychology rationality relationships risks seasteading status stock market crash transhumanism war willpower
  • Categories

    • Announcements [B] (6)
    • Book Reviews (281)
    • Economics (183)
      • Idea Futures (44)
      • Investing (82)
    • Life, the Universe, and Everything (153)
      • Fermi Paradox (6)
      • Health (111)
      • Humor (11)
    • Movies (2)
    • Politics (196)
      • China (18)
      • Freedom (19)
      • Mideast (14)
      • U.S. Politics (79)
    • Science and Technology (257)
      • Artificial Intelligence (89)
      • Miscellaneous (20)
      • Molecular Assemblers (Advanced Nanotech) (16)
      • The Flynn Effect (16)
      • The Human Mind (111)
      • Virtual Worlds (4)
    • Uncategorized (14)
Proudly powered by WordPress Theme: Parament by Automattic.