Powerful ideas from top nonfiction
Try Blinkist to get the key ideas from 5,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.
Start your free trial
Blink 3 of 8 - The 5 AM Club
by Robin Sharma
Listen to the Intro
Phishing for Phools summary
George A. Akerlof and Robert J. Shiller
The Economics of Manipulation and Deception
15 mins
Table of Contents
Phishing for Phools
summarized in 6 key ideas
Audio & text in the Blinkist app
Key idea 1 of 6
Far from being rational, free markets are full of irrational temptations for the “phool” consumer.
While we like to think of free-market economic systems as places where individuals make mutually-beneficial trades based on rational decisions, the reality is much different.
In today’s free market, people are constantly being phished for phools. But what do we mean by this?
Phishing is a process of getting a person to do something that is in the interest of the “phisherman” but not necessarily beneficial to that person.
Someone who has been successfully phished is then called a phool. And contrary to popular opinion, markets that are based on supply and demand with little to no government interference – essentially free-market systems – are actually ideal phishing grounds.
Yet most economic textbooks will tell you that most buying decisions in such markets are indeed rational. A typical example goes like this: you go to a supermarket to buy apples and oranges. The catch is that you have only a limited amount of money to spend.
The amount of apples and oranges you purchase depends on both the price of the fruit and on your personal preference for either apples or oranges.
But does this example reflect reality? Do we really make our buying decisions based on a rational assessment of a particular good’s price?
Certainly not. Free markets constantly create temptations to exploit consumer weaknesses.
Think about your local supermarket. Where are the eggs and milk located? In all likelihood, they’ve been placed strategically at the back of the store.
As milk and eggs are common items that most people purchase, every customer is forced to walk through the whole store to find them – all the while being reminded of the other things on the store shelves that could be purchased.
We’re also similarly manipulated by our own desires when making purchasing decisions.
For example, companies that sell cake mixes appeal to an individual’s subconscious desire to make something “homemade.” Instead of just including egg in the mix, they require the buyer to add a fresh egg himself, playing on the illusion that with this addition, the cake was made from “scratch.”
Want to see all full key ideas from Phishing for Phools?
Key ideas in Phishing for Phools
More knowledge in less time
Read or listen
Get the key ideas from nonfiction bestsellers in minutes, not hours.
Find your next read
Get book lists curated by experts and personalized recommendations.
Shortcasts New
We’ve teamed up with podcast creators to bring you key insights from podcasts.
What is Phishing for Phools about?
Phishing for Phools (2015) reveals the ways in which modern free-market systems, so often praised as the epitome of rational exchange, are fueled instead by willful deceit, with the goal of pushing you to act against your self-interest.
Best quote from Phishing for Phools
The free-market system exploits our weaknesses automatically.
—George A. Akerlof and Robert J. Shiller
Who should read Phishing for Phools?
- Economists or students examining free-market systems
- Any consumer interested in how the market works
- Socially-conscious business owners
Categories with Phishing for Phools
Books like Phishing for Phools
People ❤️ Blinkist
Sven O.
It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.
Thi Viet Quynh N.
Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.
Jonathan A.
Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.
Renee D.
Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.
People also liked
Start growing with Blinkist now
26 Million
Downloads on all platforms
4.7 Stars
Average ratings on iOS and Google Play
91%
Of Blinkist members create a better reading habit*
*Based on survey data from Blinkist customers