Book: Review: A Book Review Of Freakonomics

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Freakonomics is book written to explain common man about hidden truth behind certain activities. Authors has tried to relate economics with day to day activity. It also guides individual about how to understand and interpret things correctly and behave accordingly. There are six chapters in book first is about how school teachers & sumo wrestlers cheat? Second chapter is about how real estate agents behave and manipulate their customers for their own benefits. Third chapter is about why crack dealers still live with their moms? This part explains entire working system of crack dealing gangs , working of criminal organization, etc. Fourth chapter deals with why crime rate in US has decreased and what are the exact factors of it.…show more content…
Suppose I want to sell home for $300, I get offer today of $290 US dollar. So dilemma infront of me is wheather I should take offer or I wait for some period and sellit for $300 US dollar. I go to real estate agent and take his opinion he says take the offer because market is going down, in future you may not get worth customer , etc. I might think that why he would lie to me, both of us having intrest aligned real estate agent will get more money if I sell it for more money. But actually it is not. Your agent don’t have same interest as you think. Agent keep their house on an average 10 days longer that itself proves there is something fishy, isn’t it?? If total commission in deal is 1000 US Dollar then half goes to buyers dealer , half goes to sellers dealer. Each agent have to give half of remaing to their agency so ultimately each agent gets 250US Dollar, to wait for next deal of 300 US dollar agent have to work for a 10 days again bring new customer , so agent try to grab each customer and seal the deal and moe on. It is not these real estate agents are bad they are just human beings, and human beings behave according to there incentives so one should know about the incentives system to get work done perfectly. One should know what & how to measure it solves many of your problems, if you know how to look at information correctly you can solve situation which seems to be

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