Introducing the new video trailer for PHISHING FOR PHOOLS by Robert Shiller & George Akerlof

Phishing for Phools jacketDo you have a weakness? Of course you do. Which means, according to Nobel Prize-winning economists George Akerlof and Robert Shiller, you have probably been “phished” for a “phool.”

We tend to think of phishing as the invisible malevolence that led our grandparents to wire money to Nigeria, or inspired us to click on a Valentine’s day link that promised, “someone loves you,” and then promptly crashed our hard drive. But more generally understood, “phishing” is inseparable from the market economy of everyday life. As long as there is profit to be made, psychological weaknesses will be exploited. For example, overly optimistic information results in false conclusions and untenable purchases in houses and cars. Health clubs offer overpriced contracts to well-intentioned, but not terribly athletic athletes. Credit cards feed dramatic levels of debt. And phishing occurs in financial markets as well: Think of the legacy of mischief at work in the financial crises from accounting fraud through junk bonds and the marketing of derivatives.

Ever since Adam Smith, the central teaching of economics has been that the invisible hand of free markets provides us with material well-being. In Phishing for Phools, Akerlof and Shiller challenge this insight, arguing that markets are far from being essentially benign and don’t always create the greater good. In fact, markets are inherently filled with tricks and traps.

We are thrilled to introduce this new video trailer in which Robert Shiller talks about his new book with George Akerlof, Phishing for Phools:

 

What are Wall Street’s smartest people reading? Lasse Pedersen’s EFFICIENTLY INEFFICIENT

Pedersen jacketLasse Pedersen’s new book, Efficiently Inefficient, a look at the key trading strategies used by hedge funds, just made two lists of top investment books. The Wall Street Journal included it in a list of “the books Wall Street’s smartest people think you should read this summer”, where it was recommended by Torsten Slok, ‎chief international economist at Deutsche Bank. ETF.com also gave the book a shout out, naming it one of the “must read books for serious investors”.

Lasse Pedersen, a finance professor at Copenhagen Business School and New York University’s Stern School of Business, and a principal at AQR Capital Management, is determined to show how markets really work in a world where they are neither perfectly efficient nor completely inefficient. So what exactly does he mean by the contradiction in terms “efficiently inefficient”? From ETF.com:

Imperfectly Efficient

Regarding the book’s title, Pedersen explains: “Markets cannot be perfectly efficient and always reflect all information. If they were perfect, no one would have any incentive to collect information and trade on it, and then how could markets become efficient in the first place? Markets also cannot be so inefficient that making money is very easy because, in that case, hedge funds and other active investors would have an incentive to trade more and more.”

Efficiently Inefficient includes an array of interviews with leading hedge fund managers, including Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros. Free problem sets are available online on Pedersen’s website. The introduction is available for download here.

George Akerlof and Robert Shiller pose with their new book jacket

Nobel Prize winners Robert Shiller and George Akerlof got the chance to pose with the phenomenal cover for their forthcoming book, Phishing for Phools, the lead title on our Fall 2015 list (stay tuned for the posting of our new seasonal catalog!)  The drawing on the cover is an original by New Yorker cartoonist Edward Koren, and the jacket design is by our own Jason Alejandro. You can catch George talking about the book, which is a fascinating look at the central role of manipulation in economics, at this lecture at Duke University.

Akerloff and Shiller

 

Noam Wasserman Named Finalist for 2013 George R. Terry Book Award

Noam Wasserman – The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup
Finalist for the 2013 George R. Terry Book Award, Academy of Management

The George R. Terry Book Award is granted annually to the book judged to have made the most outstanding contribution to the advancement of management knowledge. Books recognized for this award have been published during the previous two years and have made a significant impact on management theory, conceptualization, research or practice.

For more information and announcements about finalists and winners, click here.

The Founder's DilemmasOften downplayed in the excitement of starting up a new business venture is one of the most important decisions entrepreneurs will face: should they go it alone, or bring in cofounders, hires, and investors to help build the business? More than just financial rewards are at stake. Friendships and relationships can suffer. Bad decisions at the inception of a promising venture lay the foundations for its eventual ruin. The Founder’s Dilemmas is the first book to examine the early decisions by entrepreneurs that can make or break a startup and its team.

Drawing on a decade of research, Noam Wasserman reveals the common pitfalls founders face and how to avoid them. He looks at whether it is a good idea to cofound with friends or relatives, how and when to split the equity within the founding team, and how to recognize when a successful founder-CEO should exit or be fired. Wasserman explains how to anticipate, avoid, or recover from disastrous mistakes that can splinter a founding team, strip founders of control, and leave founders without a financial payoff for their hard work and innovative ideas. He highlights the need at each step to strike a careful balance between controlling the startup and attracting the best resources to grow it, and demonstrates why the easy short-term choice is often the most perilous in the long term.

The Founder’s Dilemmas draws on the inside stories of founders like Evan Williams of Twitter and Tim Westergren of Pandora, while mining quantitative data on almost ten thousand founders.

People problems are the leading cause of failure in startups; The Founder’s Dilemmas offers solutions no entrepreneur can afford to ignore.

Noam Wasserman is an associate professor at Harvard Business School.

New Economics and Finance Catalog!

We invite you to browse and download our new economics and finance catalog!
http://press.princeton.edu/catalogs/econ13.pdf

Of particular interest are some of our forthcoming titles including Benn Steil’s remarkable The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order, Ben S. Bernanke’s insightful The Federal Reserve and the Financial Crisis, and Anat Admati and Martin Hellwig’s engaging and accessible The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It. Also note Justin Yifu Lin’s The Quest for Prosperity: How Developing Economies Can Take Off. Interwoven with insights, observations, and stories from Lin’s travels as chief economist of the World Bank and his reflections on China’s rise, this book provides a road map and hope for those countries engaged in their own quest for prosperity.

Our catalog also exhibits critical textbooks including David M. Kreps’ rigorous Microeconomic Foundations I: Choice and Competitive Markets, Steven Tadelis’ comprehensive Game Theory: An Introduction, Ariel Rubinstein’s essential second edition Lecture Notes in Microeconomic Theory: The Economic Agent, and Michael Wickens’ superior second edition Macroeconomic Theory: A Dynamic General Equilibrium Approach.

If you’re interested in hearing more about our economics and finance titles, sign up with ease here: http://press.princeton.edu/subscribe/ Your email address will remain confidential!

We’ll see everyone at the meeting of the Allied Social Science Associations January 4-6 in San Diego, CA. Come visit us at booth 308! Be sure to stop by Saturday, January 5 at 1:00 p.m. for a book signing with Justin Yifu Lin, author of The Quest for Prosperity: How Developing Economies Can Take Off.

New and Forthcoming Titles in Economics and Finance

catalog coverAre you at the annual Allied Social Science Associations meeting in Denver this week?  We invite you to check out our new line-up of titles.  You can now find our new 2011 Economics and Finance catalog online at:

http://press.princeton.edu/catalogs/econ11.pdf

You will find books by Raghuram G. Rajan, Max H. Bazerman & Ann E. Tenbrunsel, John Quiggin, Kaushik Basu and Diane Coyle, just to name a few.  And if you’re at ASSA on Saturday, we hope to see you at the Popular Economics panel discussion moderated by Princeton University Press’s Director, Peter J. Dougherty.

Popular Economics Panel with:

Robert Shiller (Yale University)
Robert Frank (Cornell University)
Diane Coyle (Manchester University)
Steve Levitt (University of Chicago)
Panel Moderator: Peter Dougherty (Princeton University Press)

Jan 08, 2011 8:00 a.m., Sheraton, Governor’s Square 15

Stop by and visit booth no. 311 to say hello and browse the books.  We look forward to seeing you there. For a free e-mail notification about new titles in Economics and Finance, sign up at:
http://press.princeton.edu/subscribe/