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Freakonomics Summary

Steven D. Levitt

Freakonomics

by Steven D. Levitt

Freakonomics

Steven D. Levitt

Clock Icon5 min
Insight Icon3 key insights
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Freakonomics helps you make better decisions by showing you how your life is dominated by incentives, how to close information asymmetries between you and the experts that exploit you and how to really tell the difference between causation and correlation.

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Freakonomics

by Steven D. Levitt

Freakonomics

Steven D. Levitt

Overview

It never fails to baffle us how cheap learning has become. Get this: For $3.99 you could watch a 90-minute movie that details some of the best economic research of the 21st century with great animations, scenes and explanations. Ridiculous!

There are three main themes in Freakonomics. One is incentives, the issue of how we react to rewards and punishments. Another is information asymmetry, and which consequences arise from various gaps of knowledge and how we try to compensate for those. The last big theme is causation vs. correlation and how we often try to explain things the wrong way.

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Favorite Quote

"Morality, it could be argued, represents the way that people would like the world to work, whereas economics represents how it actually does work."

Stephen Dubner & Steven Levitt

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Freakonomics

Steven D. Levitt

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