One sentence summary:
In “Hidden Order: The Economics of Everyday Life”, author David D. Friedman explores how economics influences daily decision making and actions.
Book genre:
Non-fiction, economics, popular science
Main topic of the book:
The book delves into the economic principles at play in everyday situations and how they shape human behavior and interactions.
Key ideas:
- Economics is not just about money and markets but also about the decisions people make in their daily lives
- Unseen forces and incentives can drive behavior and outcomes
- Many common phenomena can be explained using economic principles
- Understanding economics can lead to better decision-making and improve individual and societal well-being
Main parts of the book and a short summary:
Part I: Price Controls and Taxes
This section explores the impact of government intervention in markets, specifically price controls and taxes. The author discusses how these measures can lead to unintended consequences and distortions in economic activity.
Part II: Cooperation and Conflict
Here, the book delves into the dynamics of human cooperation and conflict. Friedman explains how economic theory can be applied to understand why people cooperate and how conflicts can be resolved through various incentives and mechanisms.
Part III: Law and Economics
In this section, the author explores how economics can shed light on various legal issues such as property rights, torts, and contracts. He also discusses the role of the legal system in promoting efficient and fair outcomes.
Part IV: The Economics of Life
This part of the book covers a range of topics including marriage, education, discrimination, and risk-taking. The author uses economic analysis to explain societal norms and individual behavior in these areas.
Key takeaways:
- Economics is relevant to various aspects of life beyond money and markets
- Understanding economic principles can lead to better decision-making and outcomes
- Incentives play a crucial role in shaping human behavior
- Government intervention in markets can result in unintended consequences
Author’s background and qualifications:
David D. Friedman is an American economist, legal scholar, and author. He is a professor of law at Santa Clara University and is known for his work in law and economics, an interdisciplinary field that applies economic analysis to legal issues. He is also the son of Nobel Prize-winning economist Milton Friedman.
Target audience:
The book is aimed at a general audience interested in understanding how economics impacts daily life. It does not assume any prior knowledge of economics and presents complex ideas in a clear and accessible manner.
Publisher and first publication date:
The book was published by HarperCollins in 1996.