Essay on Review of Freakonomics

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Review of Freakonomics
This chapter's main idea is that the study of economics is the study of incentives. We find a differentiation between economic incentives, social incentives and moral incentives. Incentives are described in a funny way as "means of urging people to do more of a good thing or less of a bad thing", and in this chapter we find some examples –public school teachers in Chicago, sumo wrestling in Japan, take care center in Israel and Paul Feldman's bagel business – of how incentives drive people and most of the time the conventional wisdom turns to be "wrong" when incentives are in place.
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As we can see this happens to the government which such policies as the ones illustrated in the public school in Chicago ones.
From this chapter I mainly learnt that incentives are "the cornerstone of modern life" – they drive our actions more than we notice, even unconsciously, they are there, and it would be useful if we are aware of this, in order to predict others behavior and probably would be useful too in negotiation.
Chapter 2: How is the Ku Klux Klan like a Group of Real-Estate Agents?
This chapter is very important from my point of view, since it talks about the importance of information in all ways of life and particularly how information means power. The asymmetries of information are a widespread problem even nowadays and we find it the most in the low class society obviously because of the lack of education.
While reading about asymmetric information I thought of lawyers in Mexico, when they use the misinformation about laws as an advantage to abuse people and get more money from them. I can think of really lots of examples about this and each of them illustrate the importance of information, not only to have power, but to prevent ourselves…