Sunday, February 28, 2010

From SuperFrekonomics:

1.)People respond to incentives. If you wanted to get more expansive, you might say this: People respond to incentives, although not necessarily in ways that are predictable or manifest. Therefore, one of the most powerful laws in the universe is the law of unintended consequences.

2.)These low expectations liberated us to write about any-and everything we found worthwhile.

3.)When the solution to a given problem doesn’t lay right before our eyes, it is easy to assume that no solution exists. But history has shown again and again that such assumptions are wrong.

4.)Gary Becker, the longtime University of Chicago economist who was awarded a Nobel Prize in 1992. In his acceptance lecture, he explained that the economic approach “does not assume that individuals are motivated solely by selfishness or gain. It is a method of analysis, not an assumption about particular motivations…. Behavior is driven by a much richer set of values and preferences.”

5.)But while there are exceptions to every rule, it’s also good to know the rule. In a complex world where people can be atypical in an infinite number of ways, there is great value in discovering the baseline. And knowing what happens on average is a good place to start. By so doing, we insulate ourselves from the tendency to build our thinking—our daily decisions, our laws, our governance—on exceptions and anomalies rather than on reality.

6.)Some people may argue that statistics can be made to say anything, to defend indefensible causes or tell pet lies. But the economic approach aims for the opposite: to address a given topic with neither fear nor favor, letting numbers speak the truth.

7.)They are not alone, of course. It seems to be part of the human condition to believe in our own predictive abilities—and, just as well, to quickly forget how bad our predictions turned out to be.

8.)Many of our findings may not be all that useful, or even conclusive. But that’s all right. We are trying to start a conversation, not have the last word. Which means you may find a few things in the following pages to quarrel with.
In fact, we’d be disappointed if you didn’t.

9.)While it is easy to observe actions—or, in the Kitty Genovese case, inaction—it is much harder to understand the intentions behind an action.

10.) Small creation like his could lead to a better understanding of the greatest creations known to humankind

11.) The test of all knowledge is experiment