Economists are an odd sort. Though I can understand a lot of their thinking, it's like they're the type of person that make their decisions comparing the lists of pro and cons. The author at least pays heed to this fact and laughs about it.

The chapter on sins excited me most. Are there really companies who you could pay to use for an alibi? Yes. Are there companies that you could pa yto be your girlfriend? Yes.

But I guess he lost me with the chapter on food. I consider myself an expert on eating since I do it many times a day - we all are!

He doe offer some suggestions to improve on meetings. Even passing some value to even the must mundane and pointless of meetings. His problems of dealing with habitual late people (one of my pet peeves) made me laugh but even an economist can't find a solution for that one! ( )

An engaging exploration of how to understand the world and take correct decisions, and apply the right types of motivation and incentives to get people on your side and do what you want. Rendered with a touch of humor - I especially like his warning that you should hide your inner economist in a family setting! A slight concern is that the author sometimes sounds obsessive, especially when discussing eating out and optimal dining- you don't have to necessarily feel like agreeing with his views totally. ( )

This is one of the few non-ebooks that I have left, which is sad because I would have liked to have had notes and highlights from this book saved in the Cloud for all posterity.

Here is a recent profile on Tyler Cowen in BusinessWeek, which tells you what you need to know about him and this book. Cowen has what my family calls a "mature palate." He has been to over 70 countries and has sampled more food, books, art, and ideas than just about anyone alive. A "cultural billionaire," as he says. (I reviewed his most recent The Great Stagnation here). I jive with Cowen probably because I agree with him about food, so I use his views to confirm my own--which he writes about. (In a restaurant, always order the strangest thing on the menu as it's probably going to be the best-prepared item. And only cook/eat at home what you can't find by eating out-- also good advice). I admire his ability to read and discard books for up to 8 hours at a time, while writing his own books, blogging, traveling, teaching, and advising PhD students. Scott Sumner once asked, "How many Tyler Cowens are there?" as he must have cloned himself somehow.

This book should probably be titled "Ignore your Inner Economist," because Cowen is often talking to people like myself-- urging us to resist what we know to be irrational and think of a greater good. Chapter 5, on signaling, seemed to be written directly to me (Pg 92):

If you are the economically informed member of your family, or perhapes even an economist, don't flaunt it. Hide its universal nature or widespread applicability. Do not present economic wisdom as a matter of principle or as a general way of thinking about life. To look good at home, make all economic points in purely specific contexts. Don't prattle on about incentives or signaling as all-powerful means for understanding the entire world.

He goes on to talk about how I should ignore the $4 billion in deadweight loss to society each Christmas from gift-giving, and just do it because it makes others happy and that's what matters. (And this can sometimes be modeled. Ex: If my receiving a gift causes various family members' utility to increase by 10 and mine to decrease by 2, then it's a net positive 8). This book is the antithesis of pop economics books.

I liked his chapter on the Seven Deadly Sins. Many people engage in acts that may increase overall utility but be harmful for society in the long-run. Some people engage in arbitrage that doesn't make the market any more efficient-- people finding items on eBay that are low-priced because the seller spelled the name of the item wrong, for example.

On the behavioral side, we all engage in the "dangerous and necessary art of self-deception." Pg. 115:

"Many of us think... we are the best judges of political and religious truth in the entire world. If we knew some better judge of truth, we would accept that person's opinions all the time...Even the deferential think they are 'the best spotters of people to whom we should defer' in the world."

I tend to fall into that last sentence. My last post linked to some scientific studies of self-deceptive behavior, how when some people are confronted with information contrary that seems to disprove what they believe, they simply reinforce their beliefs rather than change them. Reagan Mythology is similar to how many Muslims who refuse to believe Bin Laden was behind 9/11.

Most useful is probably the last chapter, which is on charitable giving. Give to people who need money but aren't begging for it rather than the beggar on the corner. Become a loyal giver to a few charities and get your name off their "share" list and their costly mailing lists. Explore creative means like microcredit, where wealth can be created.

I give this book 4 stars out of 5. Cowen is more verbose than he is on his blog or his Kindle Single. But the book definitely got better as I went, which he probably intended. ( )

The information was a bit dense at times and not always presented in a manner that was easy to understand, but this little volume packed a LOT of information in. The subtitle is a bit misleading - he only touches on these subject early on. I was expecting chapters on each of them, similar to Freakonomics. ( )

Very charming book illustrating with numerous well chosen examples what economics can do to help us analyze common problems we encounter in every day life. While the various topics may feel somehow disconnected and haphazard, some of them are really quirky and insightful and connect in unexpected ways with far from trivial issues of personal and cultural identity. All in all, Cowen comes across as a very insightful, nonjudgmental guy, with whom one would like to hang out for tips and relaxed cooking and music listening. Cowen keeps a very regular blog that constantly amazes me for the breadth of his interests and insights. ( )