I&#x27;m glad to see that this book review is by Cass R. Sunstein, who has devoted much of his research to related issues. Human psychology works in ways not completely anticipated by classical liberal economists like Adam Smith (although Smith deserves more credit than he gets for a deep understanding of human psychology). One interesting paragraph in the review tells the tale: &quot;To support this claim, Akerlof and Shiller point to an uncanny prediction by John Maynard Keynes in 1930. Keynes expected that by 2030, the standard of living would be eight times higher. We are on track to get in that vicinity. At the same time, Keynes made a profound mistake. He predicted that the workweek would plummet to fifteen hours and that people would struggle not with financial problems, but with a surfeit of leisure. That isn’t going to happen. What Keynes missed is that free markets generate new desires. In Akerlof and Shiller’s words, markets &#x27;do not just produce what we really want; they also produce what we want according to our monkey-on-the-shoulder tastes.&#x27;&quot; In other words, producers can act jointly more effectively than consumers can in exploiting weaknesses of human psychology. This seems to be a fair statement with a lot of empirical support.<p>I think the reviewer does a good job at the end of his review of critiquing the book&#x27;s view of behavioral economics by asking for more specificity about which mechanisms most lead to &quot;phishing&quot; (dishonest marketplace behavior to fool consumers). To say that free markets take advantage of consumers does not guarantee that making markets less free is any better for consumers, unless some new form of regulation is based on careful research and an affirmation of commonly held human values.