28 February 2014
Freakonomics is a book about provocative analysis of human motivation and modern living. It reveals to the reader a common world through a totally different pair of lens. The author uses the raw data of economics to ask imaginative questions while it forces the reader to think cleverly and divertingly of the answers. The author’s approach to economics was done in a very unconventional way- as a smart, curious explorer parallel to Christopher Columbus when he discovered the Americas. The book has several topics in which it focuses on. The book is structured around four essential ideas: incentives are the basis of modern life, conventional wisdom is often wrong, dramatic effects often have distant causes, and experts use their information advantage to serve their own interests. All the chapters in the book are questions. There are 2 questions or chapters that stand out to me; “what do school teachers and sumo wrestlers have in common” Each chapter question is answered from research conducted by Levitt. One main point emphasized in Freakonomics is that economics is essentially the study of incentives. This point tries to help you understand why people behave a certain way and how or why they benefit from what they do. Freakonomics talks about incentives and it explains the purpose of those benefits and how and why people use those incentives. Incentives that were discussed in the book were ones that motivate decision making which include social, financial and moral. The author helps us to understand how people make moral decision because they feel it is the right thing to do. The author also state financial decisions are made by people based on money and what they can gain economically. People also make social decision which is determined by people expectations. The book points out that ethical people will act unethical in order to get what they want. Principles of incentives, are used...
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