Levitt And Dubner's Freakonomics

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Written by Steven D. Levitt and Stephen J. Dubner, Freakonomics is built upon three major philosophies: incentives are the fundamentals of life, experts on a subject use their knowledge as an advantage to serve their own wellbeing, and orthodox wisdom is wrong most of the time. This book goes into detail to explain the mindsets of humans, from school teachers to sumo wrestlers, through statistics. Levitt and Dubner claim that when the data is closely examined it can relate to more concepts than originally hypothesized. The style of this informative piece is very precise yet, at the same time, very concise and to the point. The tone carried throughout the book is informative and knowledgeable. The authors use distinct tactics to get points across …show more content…

The exhortation of using incentives to receive and analyze responses reoccurs throughout the book periodically. Levitt and Dubner believe that incentives can be categorized into three different types: moral incentives, social incentives, and economic incentives. Moral incentives are defined as circumstances in which someone acts purely out of conscience or guilt. Social incentives are observed when a person’s actions are solely linked with shame or glory. Economic incentives are when people act with financial interests and benefits in mind. One example portrayed in the book is the day care center in Israel. When parents start getting charged a late fee for picking up their child at the daycare facility, more parents show up late. Before the fine was placed, parents would pick up their kids on time with a moral or social incentive. After the fine was placed parents acted with an economic incentive, which wasn’t as bad as a sense of guilt. Further data shows evidence of relations between incentives and cheating in the Chicago Public School System. In 1996, the school system started to give bonuses based on the standardized test scores of teachers’ students. If a teacher’s students showed improvements on their test scores, the teacher received a monetary bonus. Researchers found after studying score results from 1993–2000 that a spike in cheating occurred in 1996. A three-year study showed that on average cheating occurred in at least 200 Chicago classrooms per year. Therefore, Levitt and Dubner’s theory of incentives is

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