Excerpt from Freakonomics by Steven Levitt, Stephen J. Dubner, plus links to reviews, author biography & more

Summary |  Excerpt |  Reading Guide |  Reviews |  Readalikes |  Genres & Themes |  Author Bio

Freakonomics

A Rogue Economist Explores the Hidden Side of Everything

by Steven Levitt, Stephen J. Dubner

Freakonomics
  • Critics' Opinion:

    Readers' Opinion:

  • First Published:
    Apr 2005, 256 pages
    Paperback:
    Apr 2006, 256 pages

  • Rate this book


Buy This Book

About this Book

Print Excerpt


An incentive is simply a means of urging people to do more of a good thing and less of a bad thing. But most incentives don't come about organically. Someone -- an economist or a politician or a parent -- has to invent them. Your three-year-old eats all her vegetables for a week? She wins a trip to the toy store. A big steelmaker belches too much smoke into the air? The company is fined for each cubic foot of pollutants over the legal limit. Too many Americans aren't paying their share of income tax? It was the economist Milton Friedman who helped come up with a solution to this one: automatic tax withholding from employees' paychecks.

There are three basic flavors of incentive: economic, social, and moral. Very often a single incentive scheme will include all three varieties. Think about the anti-smoking campaign of recent years. The addition of a $3-per-pack "sin tax" is a strong economic incentive against buying cigarettes. The banning of cigarettes in restaurants and bars is a powerful social incentive. And when the U.S. government asserts that terrorists raise money by selling black-market cigarettes, that acts as a rather jarring moral incentive.

Some of the most compelling incentives yet invented have been put in place to deter crime. Considering this fact, it might be worthwhile to take a familiar question -- why is there so much crime in modern society? -- and stand it on its head: why isn't there a lot more crime?

After all, every one of us regularly passes up opportunities to maim, steal, and defraud. The chance of going to jail—thereby losing your job, your house, and your freedom, all of which are essentially economic penalties -- is certainly a strong incentive. But when it comes to crime, people also respond to moral incentives (they don't want to do something they consider wrong) and social incentives (they don't want to be seen by others as doing something wrong). For certain types of misbehavior, social incentives are terribly powerful. In an echo of Hester Prynne's scarlet letter, many American cities now fight prostitution with a "shaming" offensive, posting pictures of convicted johns (and prostitutes) on websites or on local-access television. Which is a more horrifying deterrent: a $500 fine for soliciting a prostitute or the thought of your friends and family ogling you on www.HookersAndJohns.com ...

The foregoing is excerpted from Freakonomics by Steven D. Levitt and Stephen J. Dubner. All rights reserved. No part of this book may be used or reproduced without written permission from HarperCollins Publishers, 10 East 53rd Street, New York, NY 10022

Membership Advantages
  • Reviews
  • "Beyond the Book" backstories
  • Free books to read and review (US only)
  • Find books by time period, setting & theme
  • Read-alike suggestions by book and author
  • Book club discussions
  • and much more!
  • Just $10 for 3 months or $35 for a year
  • More about membership!
Member Benefits

Join Now!

Check the advantages!
Just $10 for 3 months or $35 for a year

    •  
    • FREE
    • MEMBER
    • Range of media reviews for each book
    • Excerpts of all featured books
    • Author bios, interviews and pronunciations
    • Browse by genre
    • Book club discussions
    • Book club advice and reading guides
    • BookBrowse reviews and "beyond the book" back-stories
    •  
    • Reviews of notable books ahead of publication
    •  
    • Free books to read and review (US Only)
    •  
    • Browse for the best books by time period, setting & theme
    •  
    • Read-alike suggestions for thousands of books and authors
    •  
    • 'My Reading List" to keep track of your books
    •  

Editor's Choice

  • Book Jacket: The Book That Matters Most
    The Book That Matters Most
    by Ann Hood
    BookBrowse First Impression reviewers appreciated the innovative structure of The Book That Matters ...
  • Book Jacket: The Invisible Life of Ivan Isaenko
    The Invisible Life of Ivan Isaenko
    by Scott Stambach
    BookBrowse First Impression reviewers were uniformly impressed by this difficult yet heartwarming ...
  • Book Jacket: Boy Erased
    Boy Erased
    by Garrard Conley
    Growing up in rural Arkansas, Garrard Conley did not quite fit the mold of his strait-laced, ...

First Impressions

  • Book Jacket

    The Invisible Life of Ivan Isaenko
    by Scott Stambach

    "An auspicious, gut-wrenching, wonderful debut." - Kirkus, starred review

    Read Member Reviews

  • Book Jacket

    Underground Airlines
    by Ben Winters

    "The Invisible Man meets Blade Runner in this outstanding alternate history thriller." - PW Star

    Read Member Reviews

Book Discussions
Book Jacket
This Must Be the Place
by Maggie O'Farrell

An irresistible love story for fans of Beautiful Ruins and Where'd You Go, Bernadette?

About the book
Join the discussion!
Win this book!
Win Lady Cop Makes Trouble

The Kopp Sisters Return!

One of the nation's first female deputy sheriffs returns in another gripping adventure based on fact.

Enter

Word Play

Solve this clue:

Manners M (T) M

and be entered to win..

Books that     
entertain,
     engage

 & enlighten

Visitors can view some of BookBrowse for free. Full access is for members only.

Join Today!

Your guide toexceptional          books

BookBrowse seeks out and recommends books that we believe to be best in class. Books that will whisk you to faraway places and times, that will expand your mind and challenge you -- the kinds of books you just can't wait to tell your friends about.

 
X

Free Weekly Newsletter

Keep up with what's happening in the world of books:
Reviews, previews, interviews and more!



Spam Free: Your email is never shared with anyone; opt out any time.