Article review on the book Freakonomics by Steven D.Levitt and Stephen J.Dubner

1. FREAKONOMICS
S T E V E N D. L E V I T T
S T E P H E N J. D U B N E R
P R E S E N T E D BY
N I T H I N J O J I S A N KO O R I K K A L

2. CHAPTER 1
WHAT DO SCHOOL TEACHERS
AND SUMO WRESTLERS HAVE IN
COMMON?
=

3. FINE FOR LATE PICKUPS
• FINING PARENTS $3 FOR LATE PICKUPS
• AS $3 WAS TOO SMALL AN AMOUNT THE NUMBER OF LATEPICKUPS WENTUP
• THE FINE ABSOLVED THE MORAL GUILTY FOR SHOWING UP LATE

4. CHICAGO PUBLIC SCHOOL
• INFLATED STUDENTS MARKS OR CHANGED ANSWERS AFTER THEY FINISHED TEST
• FOR INCENTIVES OR PROMOTION ,LIKELY TO BE YOUNGER AND LESS QUALIFIED
• ANSWER/LETTER PATTERN INDENTIFIES CHANGE IN ANSWERS AND PREVIOUS
MARKS SHOWED WHETHER MARKS WERE INFALTED
• 200 TEACHERS PER YEAR CHEATED,FOUND USING THE ABOVE ALGORITHM

5. SUMO WRESTLERS
• ELITE TOURNAMENTS HELD 6 TIMES/YEAR,15 BOUTS/TOURNAMENT
• IF(VICTORIES>=8) THEN BETTER RANKINGS ELSE RANKINGS FALL
• 8-6 RECORD WILL ALLOW 7-7 TO WIN FOR SOME INCENTIVES
• 7-7 WON 80% OF THE BOUTS WITH 8-6 WHILE 8-6 WON ONLY 40%

6. PAUL FELDMAN
• SOCIAL EXPERIMENT,DROP BAGELS AT 100S OF OFFICES
• HONOR SYSTEM VS COUNTER SYSTEM
• NOTABLE CHANGE AFTER SEPTEMBER 11TH 2015
• SMALL OFFICES HONEST THAN LARGER ONES
• GOOD WEATHER PEOPLE PAID RATHER THAN IN BAD WEATHER
• DURING HOLIDAYS PEOPLE PAYING WERE LESS –LESS

7. CHAPTER 2
HOW IS THE KU KLUX KLAN LIKE A
GROUP OF REAL ESTATE AGENTS?
=

8. KU KLUX KLAN
• FOUNDED AFTER CIVIL WAR BY SIX MEN DOING
HARMLESS PRANKS BECAME MULTI STATE TERRORIST ORG.
• THOUGH EXTINGUISHED RESTARTED BY 1920’S
• TARGETED MINORITY GROUPS-
CATHOLICS,JEWS,COMMUNISTS,IMMIGRANTS,EMANICIPATED SLAVES
• STETSON KENNEDY-WRITER DEDICATED TO END BIGOTRY
• UNDERCOVER OPERATION ENTERED THE KKK,BECAME KLAVELIERS-SECRET POLICE(KKK)

9. • KENNEDY EXPOSED THE SECRETS TO A RADIO SHOW – “ADVENTURES OF
SUPERMAN”-EVEN CHILDREN LISTENED
• TOOL FOR MOCKERY,KKK MEMBERSHIP FELL DRASTICALLY
• SIMILAR CASE FOR LIFE INSURANCE – WEBSITES CREATED-COMPARISON-CURRENCY
OF INFORMATIONS

10. REAL ESTATE AGENTS
• REAL ESTATE AGENT GAINS NOT MUCH EVEN IF
PROPERTY PRICE INCREASES-TIME TAKEN TO INCREASE
• CONVINCES THE LOW OFFER IS WORTH TAKING EVEN
THOUGH IT MIGHT SELL FOR MORE NOW/FUTURE
• INFORMATIONAL ADVANTAGE TO INDUCE FEAR
NEIGHBOUR’S HOUSE SOLD FOR LESS
• SPECIFIC WORDS-WELL MAINTAINED(OLD),GRANITE,MAPLE,
STATE OF ART; FANTASTIC,CHARMING

11. TRIVIA SHOW- WEAKEST LINK
• BLACKS AND WOMEN –DISCRIMINATED NORMALLY BUT NOT IN THIS GAME
• AFTER CIVIL RIGHTS MOVEMENT AND FEMINIST MOVEMENT –DOESN’T SHOW THE
DISCRIMINATION EVEN IF THEY TEND TO HAVE IT
• IN THE SAME SHOW-ELDERLY AND HISPANICS DISCRIMINATED-TASTE BASED AND
INFORMATION BASED DISCRIMINATION
• SAME IN THE CASE OF INTERNET DATING SITES-90% REQUESTS WERE SEND TO THE
SAME RACE
• INFORMATION POTRAYED AND ACTUAL INFORMATION DIFFERED

12. CHAPTER 3
WHY DO DRUG DEALERS STILL LIVE
WITH THEIR MOMS?

13. • CHICAGO 1989-SUDHIR VENKATESH-PhD-SURVEY ON HOUSING PROJECTS
• BLACK GANGSTER DISCIPLINE NATION-GANG LEADER- J.T-COLLEGE GRADUATE
• SIX YEARS WITH DRUG DEALERS-OPERATIONS & PROJECTS
• 100 BRANCHES UNDER DISCIPLINE NATION-J.T HEADED THIS BRANCH
• J.T’S ANNUAL SALARY -$100000 WHILE BROAD MEMBERS SALARY WAS $500000
• PAID 3 OFFICERS AND 50 FOOT SOLDIERS $9500
• FOOT SOLDIERS $3.30 LOWER THAN MINIMUM WAGE

14. • WHAT NYLON STOCKINGS AND CRACK COCAINE HAD IN COMMON?
• BOTH AFFORDABLE TO THE RICH

15. CHAPTER 4
WHERE HAVE ALL THE CRIMINALS
GONE?

16. ROMANIA
• NICOLAE CEAUSESCU-COMMUNIST DICTATOR OF ROMANIA-ABOLISHED
ABORTION
• BOOST POPULATION TO INCREASE NATION STRENGTH
• ABORTION RATE WAS 4 ABORTIONS FOR EVERY LIVE BIRTH
• WITHIN ONE YEAR OF ABORTION BAN ROMANIA POPULATION DOUBLED
• THE CHILDREN BORN HAD MISERABLE LIVES AND GOT INVOLVED IN CRIME
• HE LOST GRIP ON ROMANIA IN 1989-THE SAME YOUTH POPULATION TOOK OVER
WHO WOULDN’T HAVE BORN

17. USA
• ABORTION LEGALISED
• CRIME RATES DECREASED-EARLY 1990’S

18. CHAPTER 5
WHAT MAKES A PERFECT PARENT?

19. RISK
• RISK=HAZARD +OUTRAGE
• HAZARD>OUTRAGE => UNDERREACT; HAZARD<OUTRAGE =>OVERREACT
• PRONE TO REACT TO SITUATIONS WHICH ARE CONTROLLABLE RATHER THAN
UNCONTROLLABLE
• TERRORIST ATTACK > HEART ATTACK; SWIMMING ACCIDENTS < FIRE RESITANT
PYGAMAS,CHILD RESISTENT PACKING ETC
• PARENTING EXPERTS FOCUS ON ATTRIBUTES –MORE IN OUTRAGE

20. • ECLS-16 VARIABLES-8 CRITICAL FOR SUCCESS IN SCHOOL,8-NO RELATION
• THE SUCCESS FACTORS-MOSTLY DETERMINED BEFORE CHILD’S BIRTH
• LESS OF WHAT PARENTS DO AND MORE OF CIRCUMSTANCES BORN INTO

21. CHAPTER 6
WHAT MAKES A PERFECT PARENT?(II)

22. • HOW NAME EFFECTS BEHAVIOUR?
• LOSER LANE VS WINNER LANE
• BLACK AND WHITE NAMES BEGAN DIVERGING FROM 1970’S
– BLACKS GIVING WHITE NAMES WERE PENALISED BY THEIR OWN COMMUNITY
• FAKE RESUMES WERE SENT WITH NAMES DIFFERENT-WHITE PREFFERED
• NAMES SHOWS INCOME LEVELS-BLACK NAMES
• NAMES ARE INDICATOR OF PERSON’S INCOME RATHER THAN THE CAUSE

23. • CLEAR DISPARITY IN NAMES OF HIGH,MIDDLE AND LOW CLASS
• PROPOSES WHAT WOULD BE THE NEW NAME LIST FOR 2015
• THE NAME GIVEN BY PARENTS ACTUALLY SHOWS WHAT THEY EXPECT OF THE
CHILD-EVEN THOUGH IT MIGHT NOT BE TRUE.

24. CONCLUSION
• ECONOMICS AS A FIELD OF SOCIOLOGY
USES THE HELP OF HUMAN BEHAVIOUR TO INTERPRET THE WORLD IN A
LOGICAL WAY RATHER THAN WHAT IS ACCEPTED GENERALLY

25. CRITICISM
• SINCE THIS BOOK LOOKS AT THE WORLD ECCENTRICALLY, THE BASIS FOR
ASSUMPTIONS HAVE CRITICISED
LEGITIMISATION OF ABORTION
• BOOK HAS BEEN CONSIDERED CONTROVERSIAL –IF YOU WERE A TERRORIST HOW WOULD
ATTACK

26. THANK YOU!!!