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Ready to learn the most important takeaways from Freakonomics in less than two minutes? Keep reading!
Why This Book Matters:
Freakonomics helps readers understand the weight of incentives on everyone’s behavior.
The Big Takeaways:
- There are three different types of incentives: economic, social, and moral.
- If Using all three types of incentives becomes the most powerful tool in changing behaviors.
- Not all incentives motivate people equally.
- For example, disincentives for criminal behavior of prison would keep most people from becoming criminals, yet there are still people who break laws.
- Experts can manipulate information and use fear to mislead people who are not knowledgeable.
- For example, a salesperson could discourage a buyer from purchasing a less expensive car by saying that it’s not safe to help sell a more expensive car.
- A common assumption is when two things happen at the same time, one caused the other.
- Did a political candidate win an election because he or she had more money, or did more people contribute to a campaign resulting in a successful candidacy?
- People tend to jump to conclusions about the cause of problems.
- Evident and immediate causes are the main focus of issues, whereas small, indirect causes are ignored.
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