"The Undercover Economist" - A Review

Tim Hartford's book about the underlying theories that drive our behaviours was a very interesting read. It explained in layman terms how the scarcity of a resource, as well as the information that each party has, and other external factors drive the prices that we are willing to pay.

I especially liked his explanation on the intricacies of auctions, and how one would go about getting the best price for an asset. There was a section about poker where the theory goes that you should bluff only when you have the worst hands, not when you have the semi-strong hands (as I try to do).

The section on why poor countries are poor was food for thought, arguing that the 'social capital' of poor countries was low, which made it so hard for poor countries to start reform. He continues with a convincing (in my opinion) statement at the need for lowering global trade barriers. I finally understand 'comparative advantage'!

So very informative book, worthy of a read.