Football coaches are known for being extraordinarily conservative when it comes to calling a risky play, since a single bad decision, or even a good decision that doesn’t work out, can get you fired. In the jargon of behavioral economics, coaches are “loss-averse”; this concept, pioneered by Amos Tversky and Daniel Kahneman, holds that we experience more pain with a . . .
Several years ago, Steve Levitt and Ian Ayres wrote a paper about Lojack, the silent anti-auto-theft device. They found that crime theft falls overall in areas where even a small percentage of the cars carry Lojack. I got to thinking about Lojack when we received this e-mail the other day from a reader frustrated with the volume of bicycle thefts . . .
For a long time, the pro-life movement has had a keen sense of how people respond to incentives. Protesters outside of clinics proved to be a very effective strategy for raising the social and moral costs of seeking an abortion. Now a Planned Parenthood clinic in Philadelphia has come up with a very clever strategy for fighting back, called “Pledge-a-Picket:” . . .
As we wrote in Freakonomics, Realtors are incented to use proprietary information to the disadvantage of their customers. (Don’t be so smug: you probably would too if you were a Realtor.) The National Association of Realtors once yelled at us for discussing this situation on TV. Now the N.A.R. has a new and far more powerful enemy: the U.S. Department . . .
Levitt and Dubner were on The Today Show this morning (Wednesday), discussing Freakonomics. Click here for a video link. Here’s a transcript: HEADLINE: Steven Levitt and Stephen Dubner discuss their book, “Freakonomics.” MATT LAUER, co-host:We’re back at 8:30 on a Wednesday morning. Coming up in this half-hour, what the heck is “Freakonomics”? It’s a book about economics, don’t worry, this . . .