With the stock market gyrating in 100+ point swings, it’s time for a little economic sanity. Eduardo Porter, who writes about economics for the New York Times, answers plenty of questions like “Are men naturally polygamous?” in The Price of Everything: Solving the Mystery of Why We Pay What We Do. The answer turns out to be: yes. Porter explores why housing bubbles form (and burst!), why people tend to become less religious as they become richer (and more religious as they become poorer), and why we probably won’t do anything major about global warming (its effects are in the future). Pricing has a psychological dimension and Porter demonstrates how prices change depending upon how we feel. I found the examples Porter provides compelling and his book fascinating. Highly recommended! GRADE: A
I always wonder about pricing ever since I heard a salesman in KFC saying that it costs them about six cents to make a drink (mostly for the cup) that they charge us $2-3 for.
Coke and Pespi are basically sugared, carbonated water, Jeff. That is very inexpensive to brew up. The salesman was right about the cost of the plastic cup. The rest is pure profit.
I hope some day to be able to read books like this again. Read without being scared to death or enraged. I can’t take the step back from it that Phil, for instance, can take.
Knowledge will set you free, Patti. THE PRICE OF EVERYTHING won’t scare you, but it will explain a lot about why things cost what they do.
Do you think Mr. Porter has told Mrs. Porter that men are naturally polygamous? That would be an interesting conversation.
George, after reading your review, I put this book on order. It does indeed look fascinating.
Thanks for the kind words, Drongo. I think you’ll really enjoy THE PRICE OF EVERYTHING. It explains a lot.