Essay Freakonomics chapter 1 summary - 688 Words

Freakonomics Chapter 1 Summary In chapter one of Freakonomics, Stephen Dubner and Steven Levitt describe how when incentives are strong enough, many usually honest people from different walks of life will cheat in order to gain financially or climb the ladder in their careers. The authors define an incentive as â€Å"a means of urging people to do more of a good thing or less of a bad thing.† This chapter covers three varieties of incentives: Economic, Social and Moral. Economic incentives motivate people with the promise of money or goods. Social incentives motivate people to respond in a certain way because they care about how they will be viewed by others. Moral incentives motivate people on the basis of right and wrong. We look at four†¦show more content†¦The next case study was on Sumo Wrestling matches in Japan. Sumo wrestling is huge in Japan and the ranking is everything to the sumo wrestlers. Highest ranked wrestlers are treated like royalty while those who don’t rank as high must tend to their superiors and do jobs that are less than desirable. The results of the data in this chapter shows that a wrestler very well might throw a match to help his opponent maintain his current ranking, when throwing the match does not hurt or help his current ranking. There was economic and social incentive for them to cheat. A wrestler would help another out with the promise of being helped out when they needed it. It was proven that the majority of sumo wrestlers do cheat at one point or another. The last study was data collected by an entrepreneur named Paul Feldman who decided to start a bagel business in the Washington D.C. area. He would drop off bagels to different offices and leave a basket for the employees to drop in the money for the bagel, a sort of honor system. He kept track of the payments and started an accidental study on honesty. The data showed that smaller offices are more honest than larger ones. Also, someone’s mood could affect if they would pay or not. After reviewing his findings, Feldman believed that morale was a key factor in whether the employees were being honest. Evidently people are not above cheating, evenShow MoreRelatedThesis Of Freakonomics1352 Words   |  6 Pages AP Macroeconomics Summer Homework Seohee Lee Period 5 I) Introduction Book Title: Freakonomics Author name: Steven D. Levitt, Stephen J. Dubner The author Steven Levitt studied economics at Harvard University and MIT. He is primarily known for his work in the field of crime. The title Freakonomics means a study of economics based on the principles of incentives. The title is related to the book since he emphasizes how incentives drive and affect people’s actions. Although this book does not haveRead MoreApplication of Freakonomics to Project Management1806 Words   |  8 PagesA Book Review of Freakonomics and Application to Project Management November 2010 Project Management Summary The idea to write Freakonomics began in 2003 when journalist and award winning author Stephen Dubner wrote a profile of economist Steven Levitt for the New York Times Magazine. At the time, Levitt, an Economics professor at the University of Chicago, was focusing his research efforts on answering unique and sometimes controversial questions concerning topics such as crime,Read MoreThe Book That Caught My Eye Was Freakonomics : A Rogue Economist1967 Words   |  8 PagesThe book that caught my eye was Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven Lewitt and Stephen J. Dubner. I chose this book because after looking through multiple books, I decided this one was the most interesting. 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