FREAKONOMICS By TEAM NORDSTROM(Sangeeta, Dhandabani, Munir, Baibhav, Shushil) 1
Freakonomics A new field of study introduced by Steven D. Levitt (an economist) and Stephen J. Dubner (an award- winning author and journalist) Helpful to reveal, through real life examples, that the tools of economic research can be useful in the study of the relationships that underlie the events and problems that we encounter every day. It works by exploring “the hidden side of everything”. 2
The Hidden Side Of EverythingThe book is based on four fundamental ideas:1) Incentives are the cornerstone of modern life.2) Conventional wisdom is often wrong.3) Dramatic effects often have distant, even subtle, causes.4) "Experts" use their informational advantage to serve their own interests. 3
What Do Schoolteachers and Sumo Wrestlers Have in Common? Significant percentage of teachers helped their students to pass the annual standardized tests. The system provides incentives to schools and teachers whose students get high scores. Incentives scheme in Sumo wrestling makes it highly prone to cheating. To maintain his ranking, wrestler needs to win at least 8 victories out of 15 every year. 4
Ku Klux Klan & Real-Estate Agent The Ku Klux Klan and real estate agents have one thing in common both use information to gain power over other. The Klan was and still is a secret terrorist organisation, who believed that Black Americans were inferior and used terror and violence against blacks, Catholics and Jews to preserve “ the American way of life”.
Ku Klux Klan & Real-Estate Agent The real-estate agents always use code words which have different meanings like KKK. Like real-state agents insurance agents also follow same strategy to use information to gain power over others.
Why Do Drug Dealers Still Live with Their Moms? In a Chicago neighbourhood gang the leader (whos now in jail) made $100,000 a year (tax free) over four years. His officers made only $700 a month and his foot soldiers made only $3.30 an hour, less than the minimum wage. They had no choice but to live with their mothers. 7
Where Have all the criminals gone!!! The central theme: To figure out the reason behind sudden decline in the crime rate! Is that because of - Innovative policing strategies, Increased reliance on prisons, Changes in crack and other drug markets, Aging of the population, Tougher gun law, Strong economy , Increased Number of police or Other measures like increased use of capital punishment ? It is because of the legalization of abortion which made the crime rate to go down.
What Makes A Perfect Parent? In 1983 T. Berry Brazelton “Beautifully prepared for the role of learning about him or herself and the world all around” L. Emmett Holt saying that the baby is not a “Plaything”
More Dangerous Swimming pool and Guns Flying or Driving Risk = Hazard + Outrage
Perfect Parenting, Part II; or: Would a Roshanda by Any Other Name Smell as Sweet? The main theme of this chapter circles around the prevailing African-American culture in the United States. The individuals with distinctively black-sounding names tend to achieve lower attainment with regard to education, social class, and economic status compared to non-black-sounding names. “Does the prevailing black culture in America reflect the economic gap between white and black people or has it caused the gap to widen?"
Perfect Parenting, Part II; or: Would a Roshanda by Any Other Name Smell as Sweet? The authors try to explain how previously obscure names become popular among white Americans. “If we only know how to ask the right questions, the modern world, despite a excess of confusion, complication and blunt deceit, is not impenetrable, is not unknowable…”