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Book details
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Author : Steven E. Landsburg
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Pages : 316 pages
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Publisher : Simon & Schuster 2012-05-01
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Language : English
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ISBN-10 : 1471101312
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ISBN-13 : 9781471101311
Book Synopsis
Seat belts cause accidents because well-protected drivers take more risks. This widely documented fact comes as a surprise to most people, but
not to economists, who have learned, perhaps better than most, to take seriously the proposition that people respond to incentives in complicated
ways. In The Armchair Economist, Steven E. Landsburg shows how economic thinking illuminates the entire range of human behavior. But
instead of focusing on the workings of financial markets, international trade, and other topics distant from the experience of most readers,
Landsburg mines the details of daily life to reveal what the laws of economics tell us about ourselves. As Landsburg shows, some behavior that
strikes most people as utterly unremarkable is quite extraordinary when seen through economists eyes. Why, for example, does popcorn cost so
much at the movie theater? The "obvious" answer is that the theater owner has a monopoly. But if that were the whole story then he would
charge a monopoly price for use of the restrooms as well. When a sudden frost destroys much of the Florida orange crop and prices skyrocket,
journalists often point to "obvious" evidence of monopoly power. Economists see just the opposite: If growers had monopoly power, they
wouldn t have to wait for a frost to raise prices. Why do restaurants earn higher profits on liquor than on food? Why are some goods sold at
auction and others at pre-announced prices? Why don t concert promoters raise ticket prices even when they sell out months in advance? Why do
box seats at the ballpark sell out before bleachers do? Why do corporations confer huge pensions on failed executives? Landsburg wields the
tools of the economist s tradeto solve these puzzles, often reaching conclusions that are at odds with our intuition. After revealing economic
principles in readily apparent phenomena of everyday life, Landsburg applies these same principles to newspaper and media accounts of public
issues. Contesting the wid