Freakonomics Chapter 1 Summary

In the book Freakonomics, written by economist Steven D. Levitt and journalist Stephen J. Dubne, the authors go through different parts of modern life to show how economics describes why people act a certain way as well as the way specific outcomes occur. They look into different aspects of society and view them with different perspectives. With the use of specific data and the fundamentals of economics, the very obscure comparisons and the different chapters in the book show correlation between economics and human nature. The main point of this book is to explain a few fundamental ideas through the answers of strange questions and how they play a major role in society.

Based on Paul Feldman’s findings, the authors of Freakonomics argue that a person, who is faced with an efficient way to cheat, will not necessarily choose to. The data involved in Feldman’s accidental bagel study proves that not all humans are corrupt. However,

​Freakonomics is a book that explores the many possibilities of why some things are the way they are. Principles of everyday life are examined and explained while Steven Levitt and Stephen Dubner search for logic in statistical economics. This book answers the questions: how can things affect what people do, why are things the way they are, and why experts routinely make up statistics. This book highlights the commonalities between schoolteachers and sumo wrestlers as well as the Ku Klux Klan and real-estate agents, the life of drug dealers, criminals, and the art of parenting.

The next case study was on Sumo Wrestling matches in Japan. Sumo wrestling is huge in Japan and the ranking is everything to the sumo wrestlers. Highest ranked wrestlers are treated like royalty while those who don’t rank as high must tend to their superiors and do jobs that are less than desirable. The results of the data in this chapter shows that a wrestler very well might throw a match to help his opponent maintain his current ranking, when throwing the match does not hurt or help his current ranking. There was economic and social incentive for them to cheat. A wrestler would help another out with the promise of being helped out when they needed it. It was proven that the majority of sumo wrestlers do cheat at one point or another.

Levitt next examines the incentives that cause people to cheat. The first example of cheating is a story of teachers cheating in Chicago public schools. To avoid the risk of getting fired or getting penalty by the government for low test scores, many teachers chose to cheat and inflate their students ' scores. They cheated by allowing the students to have more time during test, giving away answers, and even by changing students’ answers by themselves. In this case, we can see that the schoolteachers are driven by economic incentives. For them, moral and social incentives are not as strong as economic incentives. Similar cheating can be seen in sumo wrestling. In Japan, sumo wrestling is a very popular sports and the high-ranked wrestlers get great honor. Also, among sumo wrestlers, their rank determines their salary, reputation, how they are treated, and even how much he gets to eat and sleep. Because they are so desperate for higher rank, the incentive for cheating is very powerful. In the crucial matches that determines sumo wrestler’s ranking, they cheat by

In chapter 2 of Freakonomics the main argument is that the absence of information can be used for personal gain. The main example used to display this tactic is when the KKK is compared to real estate agents. Although the crafty practice of real estate agents is in no way similar to the horrors of the KKK, they have a distinct similarity when it comes to the hoarding of information. The majority of the chapter focuses on the history of the KKK and Stetson Kennedy’s effort to stop it through the infiltration and exposure via radio of the Klan. Since the Klan was dependant on their violent—despite not being extremely violent—reputation, the disclosure of the information they had withheld from the public rendered them powerless. The narrators

Co-founder of think-tank Demos, David Callahan, in his nonfiction book, The Cheating Culture, presents how cheating has become a prevalent influence in American society. Callahan’s purpose is not to shame Americans for breaking the law for a minimal profit, but rather, he intends to eliminate the underlying cause of cheating, which is the increasing gap between the rich and the poor. He adopts a sympathetic tone in order to appeal to similar feelings and experiences in his widespread readers.

The idea of cheating to attain rewards is no new concept. Throughout history, people have performed actions that contradict their morals in order to advance in society. Leaders, parents, and even children have taken shortcuts that strike at their integrity. In recent times, cheating has become more prominent than ever before. The concepts of honesty, fairness, and morality are not enforced, therefore, deception, fraud, and dishonesty prevail in the shadows. In Cheating Culture, written by David Callahan, the author addresses the issue of lying, deceit, and trickery in today's world, while also recognizing a change in the near future is within the people's grasp.

In the book Freakonomics, by Steven D. Levitt and Stephen J. Dubner, is made up of a series of scenarios in which an economist and a journalist apply basic principles of economics to demonstrate that information can often expose interesting truths about how the world operates. It uses the science of economics and specific data to challenge our assumptions about everything. In the book Freakonomics by Levitt & Dubner, compares and contrasts two groups of people or things by using their informational data. This is called juxtaposition, which means the fact of two things being seen or placed close together with contrasting effect. Levitt and Dubner look at the world in a way that is both surprising, occasionally funny, and always enlightening. They do so by drawing unexpected connections between two greatly different but complementary aspects of sociology and economics, such as sumo wrestlers to school teachers, KKK members to the real estate agents, and lastly, crack gangs to McDonalds.

Often, cheating is used to try and win, however there are several sport institutions that use cheating to lose on purpose.

Freakonomics addresses three main ideas in the first chapter, titled, “What do schoolteachers and sumo wrestlers have in common?” Steven D. Levitt introduce the scene of a daycare facility which. The author starts out having one imagine themselves as the manager of the daycare center. By four o clock, every child should be picked up from the facility because it is closing time. This is a known policy, but parents don’t abide by it because it is not enforced. There are no consequences for their actions. The author then brings up the idea of incentives. There are three types of them: moral, economic and social. Moral incentives are what motivates people do the “right” thing because they don’t want to feel condemned or like they’re being a bad

In the non-fiction book, The Cheating Culture: Why More Americans Are Doing Wrong to Get Ahead by David Callahan the author criticizes the economic world. In the beginning parts of Callahan’s work, he specifically pin-point when cheating started to become an uncommon factor is succeeding. He reflects on as far back as Greek and Romans who were fined for cheating. In every decade there was a new factor to cheat in as the author highlights many cheating ordeals exposed through-out Americas history.

In chapter 1, Levitt and Dubner describe how many people in different cultures and walks of life, which are otherwise inclined to be honest, find subtle ways of cheating to advance their position or increase monetary awards when incentives are strong enough. The authors define an incentive as “a means of urging people to do more of a good thing or less of a bad thing,” and identify three varieties of incentives. Economic incentives are those, which a person responds to in the marketplace. Social incentives motivate people to respond in a certain way because they care or are worried about how they will be viewed by others. Moral incentives appeal to a person’s sense of right versus wrong. Three case studies of the

In the book Freakonomics, Steven Levitt and Stephen Dubner note “An incentive is a bullet, a lever, a key: an often-tiny object with astonishing power to change a situation” (16). This is to showcase the amount of power an incentive can have over a person or a situation; either good or bad. Humans are found to use incentives when it comes to making daily decisions. Often, people need motives to proceed with their plans. Some tend to make either moral, social, or economic incentive. The moral incentive is about self-respect; keeping in check with what was taught to believe is right and wrong. The social incentive is how the public views the person; wanting to look good in front others. Economic incentive, however, would relate to monetary benefit. While all three incentives can affect people’s decisions, economic

When referring to the concept of cheating, there are many definitions that a person may think of. According to Dictionary.com, there are three ways of viewing the term and thus three corresponding definitions. Nevertheless, the unified theme in the idea of cheating is the use of fraud, deception, and dishonesty (Random House Dictionary). Unfortunately, this is a notion that is continually acknowledged as acceptable. One scenario that is commonly concentrated on is the act of cheating in education.