Introduction
Freakonomics is a book written by Steven D Levitt and Stephen J. Dubner. Its objective is to explore the hidden side of everything.
One Para summary of Freakonomics
Morality represents how things should work, but economics determines how the world actually works. Looking beyond conventional wisdom, expert speak, asking the right questions and knowing what to measure can help you understand what’s going on. The book Freakonomics, helps you make better decisions by understanding the incentives and information advantages
Notes from Freakonomics
The following factors contribute to how the world works.
- Incentives (and disincentives) are the fundamentals of the world. Incentives could be economic, social or moral. Understanding incentives helps you understand the world better. When stakes are high enough, everyone will cheat.
- Information asymmetry is the advantage many middlemen use to manipulate you for their own benefits.
- Experts in many fields exploit the information asymmetry available for benefits of themselves or their sponsors.
- Conventional wisdom is convenient wisdom. It is often a web of fabrication, self interest and convenience and not necessarily true.
- Life is a tournament you start at the bottom and reach the top.
- Small, indirect and distant causes can result in significant and unexpected outcomes.
- Correlation and causation are not the same.
- What parents do is less important than who they are.
This book has an associated website and a podcast here
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