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Product details
File Size: 2844 KB
Print Length: 326 pages
Publisher: Copernicus; 2008 edition (April 17, 2008)
Publication Date: April 17, 2008
Sold by: Amazon Digital Services LLC
Language: English
ASIN: B001BY0T6O
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I don't think this book is anywhere near as entertaining as the author, an economics teacher at UC Irvine, thinks. It's meant to be a popular and light-hearted look at a variety of pricing puzzles: those situations where common sense suggests the price either needs to rise or fall for business to pick up. McKenzie tries his hand at explaining a slew of them, such as the pricing of used cars or of campus housing.It's basically like "Freakonomics," except nowhere near as well-written or mind-blowing. In the preface, the author acknowledges that his book "might appear to emerge only because of the success of other economists who have sought to apply economic reasoning broadly, as Steven Levitt, an economist, with wordsmithing help of journalist Stephen Dubner, has done in the wildly successful book, Freakonomics." (p. XI) He then goes on to insist that no, he was going to write this book anyhow. In fact, he had the idea first, he says, claiming that his 1975 book, "The New World of Economics" accomplished everything that Freakonomics later did - except the sales, I would add.Anyhow, I would suggest you read "Freakonomics" instead, as that book is much more clearly written and more startling. This book can't even boast an intriguing solution to the titular problem. As if that weren't unforgivable enough, once you finish his section on the pricing of theater popcorn, you still remain to be convinced that he in fact has uttered the last word on the matter.If you're using this as a supplementary reader to an econ course, it'd better be a micro course, since many of the concepts McKenzie discusses require conversance with basic microeconomics: elasticity, consumer surplus, marginality, etc. Without a command of those, you're going to be fairly lost most of the time. Here's a sample:"Again what the theater is doing is walking its patrons down their proverbial demand curves. They aren't so much lowering the marginal price of the additional ounces as they are hiking the price on those first few ounces. and this kind of pricing structure allows theaters to effectively charge all popcorn buyers some "admissions price" for concessions, which can be used to cover their many overhead costs in providing concessions and cleanup." (p. 95)
Bought this book for my daughter. It has a lot of info but it can get confusing.
Richard McKenzie has written yet another book that belies the notion that economics is a dismal science. It's not in his hands. This book helps readers make keener sense of what they know quite well but probably had no time to analyze or apply widely. The author does not condescend to readers but takes farther what they know implicitly about how markets work, why commerce is how it is, why some oddeties are in fact, quite normal once looked at more closely than we have time for. If only McKenzie taught my economics course in college I would have been better prepared for the ups and downs of markets, large and small.
If you have seen or heard McKenzie being interviewed about his book on TV or radio, you might think that his book is about nothing more than the price of popcorn. He does provide an interesting explanation for the high price of popcorn that is very different than what almost everyone believes. But the book uses simple economic reasoning and examines lots of facts to explain the pricing of a host of different products and services. And he does so in an engaging way, with many chapters written as economic mysteries in which McKenzie begins by presenting the common explanation for a pricing policy (for example, ending prices with a 9), pointing out the problems with this explanation and then challenging readers to see things differently by leading them to a more compelling explanation for the way prices are what they are. I'm not sure this makes McKenzie the Agatha Christie of economics, but it does help make this an enjoyable as well as informative book about prices--something we all have an interest in.
Shipped as promised and the quality as promised.
great book
After reading the fun, light, breezy Freakonomics and Super Freakonomics, I gave this book a try. The author acknowledges Dubner and Levitt's work on those two books as inspiration to write his own. However, Dubner and Levitt got it right. One is an economist and professor, the other is a writer. Unfortunately McKenzie (a professor) tries to write this book alone, without the help of a professional writer. It comes off more like a textbook - lots of theory and principles - and less anecdotal prose. This could be half the number of pages and be much more entertaining. By the way, I do have a degree in economics and found it to be boring most of the time, skimming over several paragraphs just to cut to the chase.
The author spends like 5 chapters to spill out one of his points. Yes the book is somewhat relevant to "why popcorn costs so much at the movie theatre." But really, do you really want to spend 12 hours reading just to find out? No.
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