Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
Steven D. Levitt and Stephen J. Dubner apply economic theory to unconventional subjects, arguing that human behavior is driven by incentives rather than moral imperatives. They examine data to reveal hidden connections between seemingly unrelated events, such as the correlation between the legalization of abortion and the subsequent drop in violent crime rates decades later. The text analyzes how real estate agents exploit information advantages to sell their own homes for more money and investigates the organizational structure of street-level drug gangs, which mirror corporate hierarchies.
This book is for readers interested in behavioral science, data analysis, and the mechanics of social trends. It attracts those who want to understand the underlying motivations behind cheating, parenting choices, and professional corruption. Readers walk away with a framework for questioning conventional wisdom and a method for identifying how unintended consequences shape public policy. It provides a toolkit for using statistical observation to strip away social veneers and see the practical outcomes of specific incentives.
Outward-looking; a moderate read.
Best for readers like The Evidence Seeker. Which reader are you?
Insights from Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
“The agent stands to gain very little by a higher sale price, while the homeowner stands to gain quite a lot.”
Real estate agents often keep their own houses on the market longer than yours. They wait for a better price for themselves while pushing you to settle quickly.
“Corruption is a possibility that must be considered.”
Sumo wrestlers sometimes throw matches to help friends stay in the top rankings. It looks like a fair fight until you check the win-loss data from final tournament days.
“If morality represents how we would like the world to work, then economics represents how it actually does work.”
Incentives usually drive every weird decision people make. Most people will cheat just a little bit if they think nobody is watching.
School teachers and sumo wrestlers share a surprising trait. Both groups will bend the rules when their career stability is on the line.
- Published
- 2005
- Publisher
- Penguin UK
- ISBN
- 9780141928739
- Language
- EN
