NAME: Bandejas, Micaella Fevey &

Obahib, Clea
Section: C03

Title: Think like a Freak

Summary

"Think Like a Freak" by Steven Levitt and Stephen Dubner is a thought-provoking and
enlightening book that challenges readers to question conventional thinking and think differently.
Levitt and co-author Stephen J. Dubner use stories, case studies, and real-life examples to
demonstrate how unusual thinking may lead to better solutions and possibilities. Levitt and
Dubner tell the example of a bagel deliveryman who instituted an honor system, which allowed
clients to pay spontaneously and without oversight. Surprisingly, a high percentage of consumers
chose to pay truthfully, demonstrating the influence of trust and societal norms on people's
behavior. The authors investigate parental worry and how spectacular media portrayal of
potential threats, including kidnappings, can influence parents' decision-making. They argue for
risk assessment that is based on logic rather than emotion.

Learning and Insights:

The chapter "Think Like a Freak" in Steven D. Levitt and Stephen J. Dubner's book
Freakonomics encourages readers to use economic principles and think unconventionally to
solve problems. The book questions how we approach problems and offers practical advice on
how to think like a freak. To strengthen decision-making and problem-solving abilities, the
authors emphasize the necessity of asking the proper questions, trying alternative perspectives,
and understanding incentives. The concept of progressive thinking, which includes breaking
down big challenges into smaller, manageable bits, is one of the book's core lessons. Levitt
explains how this tactic helps people to approach challenges from diverse perspectives and come
up with surprising answers.
Insights Gained from the Actual Practice of Economics based on the Stories:
1. Incentives and Human Behavior: The story of the Bagel Man emphasizes the impact of
incentives on people's behavior. Businesses and policymakers may build effective methods
that encourage honesty and collaboration by knowing what motivates individuals.

2. Rational Decision-Making: The chapter promotes rational decision-making, particularly in

the face of fear and uncertainty. By assessing risks objectively and avoiding panic,
individuals can make better-informed decisions that lead to more favorable outcomes.

3. Embracing Unusual Thinking: "Thinking like a freak" pushes people to think outside of the
box. People can develop unique solutions and get deeper insights into complicated
challenges by using unconventional methods to problem solving.

The concept of incremental thinking, which includes breaking down big challenges into
smaller, manageable bits, is one of the book's core lessons. Levitt explains how this tactic helps
people to approach challenges from diverse perspectives and come up with surprising answers.
In addition, the book investigates the topic of incentives and how they influence human
behavior. To obtain a better understanding of people's decision-making processes, Levitt
encourages readers to analyze the motivations underlying their behaviors. Individuals can
unlock opportunities or overcome problems in a variety of disciplines, including business,
politics, and social issues, by discovering the correct incentives.

Finally, Freakonomics' "Think Like a Freak" chapter encourages readers to think

differently and apply economic principles to numerous facets of life. Individuals can get new
views, make more informed judgements, and effectively navigate complicated challenges by
doing so. The chapter encourages readers to adopt a curious attitude, data-driven analysis, and
the confidence to challenge conventional thinking to better comprehend the world around them.