BOOK REVIEW- FREAKONOMICS(Stephen Dubner and Steven Levitt) By-Chirag Kataria.

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BOOK REVIEW- FREAKONOMICS(Stephen Dubner and Steven Levitt) By-Chirag Kataria

Overview The book consists of a collection of articles on economics by Levitt, a famous American economist. Levitt applies economic theories to diverse subjects. An economist’s views on crime, corruption and human nature.

Main Idea The book promotes economic thinking. Authors are trying to convince that such thinking can explain so much about the world. Economics as the study of incentives. Conventional thinking may be wrong. Collect data for some interesting events and concluding the results. Mad-cow disease vs food-borne pathogens

Why read Freakonomics Many more such analysis All the stories have a secret origin, easy science, an A-Ha moment. It motivates us to actually analyze the problems around us rather than jumping to conclusions. Number 2 on New York Times bestseller list.

Incentives “An incentive is simply a means of urging people to do more of a good thing and less of a bad thing”. Three types-Economic, Social and Moral. An example-a fine of three dollars was imposed on parents who came late to pick up their children from day-care centres but this solution backfired!!!

Some Examples Cheating by Sumo wrestlers and teachers. Study of Paul Feldman’s bagel business. Washington DC and Denver -police and murders. Washington has three times the number of police officers and eight times the murders.Are the officers the murderers? Does money win elections?

Parenting Fear is a major component An example-Molly, Amy and Imani. Which is more dangerous- a gun or swimming pool? Amy’s house-gun, Imani’s house-swimming pool What would you do as parents?Is it the right choice?