Freakonomics by Steven Dubner and Steven Levitt

Another pro to this book is its ability to save time and effort. The editors have condensed their opinions and the opinions of the brightest historical minds into one book. Rather than search the internet for an assortment of interpretations on a given historical event, the reader can flip to the desired event in the text. Because of this, the student can rest assured that the content has been properly evaluated, found relevant, and is, therefore, worth the time to read. Such a time-saving benefit must not be overlooked.

I felt like I have seen this everywhere I go when it comes to buying or selling. The beginning of the chapter he gives details about the start of the KKK. They started out has a non-violent group that just did pranks and what not. Over time they grew into something more powerful. They gained a lot of intellectual knowledge. This was soon discovered by Stetson Kennedy. During his time in the KKK he was undercover to learn the ways of the KKK and all of their secrets. When having the advantage of being more intelligent than another group Levitt explains this as Information asymmetry. Throughout the chapter he explains how this can be abusive but also can be balanced in economics. An example of this is the situation with the lady trying to sell her home. Basically the real estate agent “tricks” the lady into selling her home now even though the real estate agent knows it could sell for more if it were on the market for a bit longer to sell at a higher price but the lady may have no idea that it could sell for more if she waits longer. Now in days situations like this would not exist since the internet was invented. Since everyone has a mobile device attached to them, information can be accessed anywhere at any time, especially when buying or selling. The internet provides a better leverage for buyers and sellers depending on the situations which give Information asymmetry a balance in

They explained that: “Changes in incentives influence human behavior in predictable ways”. The main point of this concept is that the more attractive an option is the more likely an individual to choose it. Another point that they also focused on was the fact that if a particular product more costly, the more unappealing it will become to the consumer. They used examples such as employees will worker harder if they feel that they will be greatly rewarded or a student will study material that they feel will be on an

Ben Goldacre, the author of Bad Science, begins dismantling scientific claims with the notion of detox. Goldacre argues that the idea of a “detox” does not exist, specifically not in a medical textbook (Goldacre, 11). It is rather a whole new physiological process that is created by marketers, lifestyle gurus, and alternative therapists. The concept of detox is rather a marketing invention, and due to its lack of scientific meaning, it can be described more as a cultural product (Goldacre, 12). How much we buy into detoxing our systems depends on how much we value ritual in our lives as individuals (Goldacre, 12). Every religion and culture has some form of purification or abstinence tradition or ritual; In Islam, there is Ramadan, in Judaism, there is Yom Kippur, and so forth (Goldacre, 13). Due to the recurring themes of purification and rituals in our lives, the idea of detoxing makes sense to us, as we believe that there are quick fixes to our negative and unhealthy habits (Goldacre, 12). We often seek redemption in our western lifestyles; whether it’s unhealthy food, drinking, drugs, or other indulgences. Therefore, the concept of cleansing our bodies from material indulgences appeals to us as we crave recovery and protection from the consequences of our harmful habits (Goldacre, 14).

An interesting point of his speech is the explanation of the Karl Duncker’s candle experiment. The experiment used some participants and gave a problem: To attach a candle to one wall and light it up not letting it to fall down. The participants received a box of matches and box of thumbtacks and were divides in 2 groups. The first one had would be timed and the second one would receive financial rewards. The second grouper took longer to conclude the task and solve the problem and this is a strange result, since we believe that bonus and financial incentives are the most important ones. The conclusion of the experiment is that financial incentive could block creativity and according to Daniel Pink, money could work to incentive basic activities but not activities that involve

We as knowledge seekers must carefully consider different aspects of each article of history and not make the mistake of believing everything we read in order to fully understand an article about our history.  We must understand the author that wrote it and interviews that have taken place.  This will enable us to look deeper

One passage that struck me as important was Wheelan's discussion of using incentives to solve social problems. He mentioned public school education, carbon emissions, and recycling as examples of poorly designed policies that promote incentives in the wrong direction. It seems unrealistic that such important issues that are so widely argued are the result of incentives that encourage behaviors we want the public to avoid. We want dedicated teachers and we want to prevent global warming and we want to stop building new landfills, but we can't when there is no motivation to act in society's best interest. Everybody wants to take the easy way out, and when the incentives line up with our desires, there's no stopping the consequences from piling

I believe the most important point that it addresses is how critical it is to know what to measure, or evaluate, in any given situation. To some people, this is simply a sixth-sense, but to some it is impossible. This is expressed by Levitt and Dubner from front to back of this book. Between cheating teachers to the effect of names, they continuously use data to prove their points. The best proof that knowing what to measure can make a difference is seen in their theory on abortion leading to crime drops. Experts and newspapers were continuously pointing in the wrong directions because they simply did not know what to

Levitt and Dubner start out Chapter One by explaining a dilemma that involves day-care centers and tardy parents. In order to resolve the unpunctual parents, a twenty week study was conducted in Israel. The idea behind the study was to apply a small fee per child if the parent was more than ten minutes late. The hypothesized result wasn’t what one would expect. Attaching the fee only made tardy parents tardier, and the number of parents showing up late nearly doubled. On page 16 of Chapter One it reads, “Economics is, at root, the study of incentives: how people get what they want, or need, especially when other people want or need the same thing.” This statement is the first time that incentives are first introduced. Levitt and Dubner go on to state that incentives are

In Aaron Bacall’s cartoon, the inefficiency of school honor codes is displayed through his use of satire. By setting the cartoon at a staff development meeting, there is evidence that the existing honor code has not been successful and revision is needed. However, rather than editing the honor code policies to value integrity and trust, the man leading the presentation declares that “Recent research has shown that a spycam can greatly improve the honor code” (Source A). If a spycam is required to prevent cheating and plagiarism, then the honor code is not an effective method to stop dishonest behavior. Rather than claiming the honor code needs a revision, the honor code should be eliminated entirely.

Firstly, our example illustrates how people respond to incentive. In economics, an incentive is defined as any factor that provides a motive for a particular course of action. This example is exemplified in our first customer. Perhaps, the promotion encourages her to purchase an extra bottle of X shampoo now instead of later. By doing so, the BOGO 1.5 promotion can be classified as an incentive which ensures her decision. As she rationalizes her decision to purchase an extra shampoo, she demonstrates that everyone do respond to incentives. In contrast, the promotion does not have the effect on the second consumer because it does not provide incentive therefore not applicable to him and his choice as a consumer.

The question of “What is History?” is answered through philosophical questions. This led to many tangents which could confuse readers and retract from the strength of the thesis. Furthermore, the concept of history being based on facts almost seems to be refuted as the author states that facts are not always concrete. An example of this is when the Carr mentions that articles are seen as a form of fact, however, that documents only tell what the author of the document believed had happened. Such a rebuttal causes confusion on whether to trust historic “facts,” as all as they seem to be all

Author Thomas L. Friedman analyses the technological advances that are creating a level economic playing field with previously disadvantaged countries rising in knowledge and wealth rivaling that of the United States and other world powers in the world. Telephone and computer technology, previously a stronghold only of developed countries, is now easily accessible and has been accessed and mastered by countries such as China and India, making these nations competitive. Friedman perceives the flattening effect as so insightful as to be compared in scope to the Industrial Revolution.

5) Describe example of incentive, opportunity, and attitude conditions that were present in the situation

incentives” (p. 8). Each of these elements can be incorporated within an organization as a