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Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
by Steven D. Levitt & Stephen J. Dubner
William Morrow & Company | May 2005 | ISBN 006073132X
Recommended by Douglas Robinson: Freakonomics is an exercise in clear, rational thinking; this book shows you how to think. Or rather, it attempts to challenge the cause and effect way of thinking that pervades everyday life. How? Levitt addresses various "problems" by breaking them down into a simple exercise in logic. For example, why is it that some (or most) estate agents don't necessarily have their clients' best interests at heart? More often than not, the house-seller and the estate agent's incentives are misaligned: the seller wants maximum value regardless of time and effort, while the estate agent wants maximum value given minimum input. Considering that the estate agent is the one who will "close the deal", it is more likely that his outcome is the one which will be followed.
Freakonomics hasn't revolutionised economic thinking, but it has simplified the "dismal science" back to its most basic form and tried to look at what economics actually is, and how it affects daily life. What are financial ratios, market trends, capitalisation figures without a human basis? These things don't mean very much without our involvement and this book attempts to bring economics back into reality.
This book isn't just for economics geeks like me, by and large, Levitt's studies don't require any high level of economic knowledge, and his explanations are clear and easy to follow. He writes with a vigour and candour, which adds greatly to the appeal and left me wanting to read more.
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About the author:
Steven D. Levitt is a tenured professor in the University of Chicagos Economics Department and editor of The Journal of Political Economy. He writes regularly for the New York Times, the New York Times Magazine, and for Slate. He co-writes a blog, Freakonomics, with Stephen J. Dubner. For more information, see his page on the Chicago University website.
Stephen J. Dubner is a writer, editor and journalist. His website is at www.stephenjdubner.com.
