An Economist Walks into a Brothel

Award-winning journalist and economist Allison Schrager introduces a new framework that will transform how we think about risk and make decisions in life.

When many people hear the word risk, they think of worst-case scenarios like losing your job, your wealth, or your spouse. But actually, as Allison Schrager explains, risk includes the full range of whatever might happen, good or bad. If we want a great relationship, we risk heartbreak. If we want to get ahead at work, we take on projects that might fail. Avoiding risk is impossible; the challenge is how to be smart about risks in everyday life.

Schrager, a distinguished economist and journalist, has studied risky situations around the world, from battlefields to brothels. Drawing on a wide range of fascinating examples, she teaches us the science of risk-taking and helps us assess and maximize the upside while minimizing the downside.

Her five key principles can transform how we approach decisions both big and small—everything from whether to change jobs, how much to offer on your dream house, how to invest a 401(k), and how much time to leave to get to the airport. This book will give you the perspective and tools to make the world less risky and more rewarding.

Allison Schrager is an economist, journalist at Quartz, and co-founder of LifeCycle Finance Partners, LLC, a risk advisory firm. Allison diversified her career by working in finance, policy, and media. She led retirement product innovation at Dimensional Fund Advisors and consulted to international organizations, including the OECD and IMF. She has also been a regular contributor to the Economist, Reuters, and Bloomberg Businessweek. She has a PhD in economics from Columbia University, currently teaches at New York University, and lives in New York City.