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As an econ buff and a business law professor, I think I have seen most everything here, slightly different terminology. I have recommended this book to several friends and acquaintances not as versed as I am in this field. I have not all seen these topics all in one place, and at this popular level. But what I call "different terminology," points to gaps here which puzzle me. For example, the classical law of fraud, for centuries, has dealt head-on with minimum boundaries and outlines of factual truthfulness required in arm's-length deals. This law provides an elegant framework that allows for the (widely known) situation that sales people and negotiators play more loosely with matters of mere opinion, versus tighter strictures on claims of fact. This fuzziness is everywhere in our consumer world, and people deserve to be sharply educated about it. But they are not educated about it, in its classical language and concepts, here. This overflight, if you will, is puzzling. Business people, lawyers, and drafters of laws have followed these contours in countless instances, and I see this as basic as arithmetic is to learning and thinking about higher math. On a wider scale, each and every contract is a micro-equilibrium reached between crossing representations of both parties, so there is a sort of "phishing equilibrium" element (without the new term here used). These are fundamental to this field, reenacted at some level in every contract, meaning millions per day. The paucity of treatment here of the basic rules of fraud and legal factual standards is astonishing to me. Yes, indirect allusions are made, but not in any clear way. Similarly, the concept of information asymmetry is at the foundation of understanding these situations, and this gets some mention, but mostly obliquely. This reminds me of a statistics book I read where the author tried to re-name everything, but the new content substantively didn't seem as novel or informative as it claimed to be. (And some print real estate in this book is devoted to how different and special and needed this boo's approach is. I somewhat agree, if reaching a new audience is the aim.) I agree that public policy makers and citizens should know this stuff, and sadly, victimizations large and small are visible all around us in everyday consumer life, not to mention, at the scale of big finance and politics. People who are not bright or well-informed are always with us, in droves. So this book does fill a need, though the particular people being blind-sided in real life are unlikely to read this. (Sadly, as in teaching, the people present and focusing on my best content are the ones who least need it, and the ones drifting off and absent need most urgently to hear what I am saying.) So a lot of this content may wind up as "preaching to the choir," as it was to me. Then again, I make an explicit professional focus on things like complex consumer contracts, so I'm not average. Also, listening to this, my mind would toss up counter-ideas I would like to flesh out about the virtues of market discipline and so on, rather than the curt and fairly rote dismissals here. I do admire that Robert Shiller has repeatedly extolled the praises of finance and free markets, so he gets points for that, and has kept me in his audience, versus the lopsided drivel I hear from both extremes, in books and elsewhere. But as to market discipline: some people are patently so little interested in protecting their own interests that they perhaps deserve the just desserts of their indolence. We really can't afford a government that will pick up after every lazy slob who doesn't care about himself or bettering his sharpness as a dealmaker. If some loll around on the beach and then expect someone to appear to magically protect them ex post, and at no cost, as many Americans seem to, perhaps they are begging for a harsh lesson. I realize, in defense of the authors' approach here, apologists for free markets are not in short supply. I am a great admirer of Robert Shiller in particular and will continue to read his books.
8 of 11 people found this review helpful
Economics is a bland subject to begin with. The narrator's tone and inability to pace his reading does nothing to help. I listen to audiobooks on similar subjects and I have never come across one I couldn't finish until now. It almost sounds like a computer narration. Don't waste your money or your free credit if you have one.
3 of 4 people found this review helpful
The authors explain with a very long list of examples how free market is bound to exploit our weakness.
The book is not well structured in my opinion and the dull narration makes it hard to keep interest.
1 of 1 people found this review helpful
An interesting study of behavioural economics with an interesting take against the now widely discredited notion that markets tend toward equilibrium.
Rather than positing that all trade is good for me, good for you, the book examines the ubiquitous, though not too often discussed, phenomena, that many transactions are good for me, bad for you.
Akerlof and Shiller use the analogy of "the monkey on one's shoulder" and examine a variety of scenarios in modern life, through the often difficult to cancel gym memberships, to the discrepancies between popular perceptions on smoking (almost universally regarded as unhealthy, and by many as dumb) but the equally harmful practice of alcohol consumption, which is not nearly as frowned upon as smoking.
Another interesting aspect of behavioural economics is the targeting of black customers by user car salesmen as they are aware that blacks are less likely to already be in possession of a vehicle, thereby having less mobility to shop around.
While this may be similar in scope and idea to Freakonomics, there are subtle differences., and not just the authors of this book being Nobel Laureates.
A key strength of Phishing for Phools is the examination of the causes of the crash of 2008, and how they liken the selling of faulty loans and toxic mortgage backed securities as the psychological manipulation of grocery sellers convincing customers to buy bad avocados.
Overall, Phishing for Phools is an important book in a behavioural science and economic revolution. We need very much to change our thinking to become responsible adults who live within our means and not lead reckless lives of economic speculation.
The only flaw is that one can get occasionally lost.
Phishing for Phools is an eye opener, and an important work in behavioural economics.
revealing the wolves in sheep's clothing and the emperor 's new marketing. interesting reveal of financial marjets structural abuses of trust.
0 of 1 people found this review helpful