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    7 - Levitt, S., Dubner, S. J. (2009) - SuperFreakonomics

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    Artem F

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    the problem, Horley may never know for certain ihe wat ecessfl And yo, the tear, are even less kay to se det evidence of hi access bets t would be lvl, marifsting isl in ero a tacks that never happen ‘Bt perhaps youl ind yourself ina Britsh pub some distant dy, ‘one sta avay fom an snassoming, lightly standoffs strange. You ‘havea pint with hm, and then another and third. Wi ls tangue Toosened a bit, he mentions, almost shell hat he has recently sled an onorit: hee now known as Sir Ian Horley He nt at liberty to discuss the deeds that lod to is knighthood, but i has something oo with protecting el society from those who would doi great harm. Yi thao him profs fr the great vervic be has performed, nd buy hen another pnt and then few more. When the pub at ast oss, the two of you stumble ctsde. And then, just at he sabout ost off on foot down a darkened lane, you think ofa ery small wat repay le servic. You path him back oto the curb hail a ‘tas and stufThim imide Boeause, remember, fends don let frends salle drunk [ABOUT APATHY AND ALTRUISM, 1m March 1964, Inte oa cold and damp Thosiay night, something ‘erie happened in New York iy, something suggesting that human bing are the mot brutally selfish animals to ever roam the plat, -Acwenty-lghtyearold woman named Kitty Genovese drove home fom workand parked asl nthe ltt the Long Island Rail Road station. Shelve in Kew Gardens, Quoons,roghly twenty minut by tan om Manhattan, Teas nce neighborhood wth homes on shaded ota handfl of apartmentbuldigs and a small commercial Alii Genovese ied above arowofshops that fronted Austin Stet. The cntrance to he partment was araund the rear. She ot ost of her ce and locked it almost immediately, a ma started chasing her and stabbed herin the hack. Genovese sereamed. The assalt eck pace on the sidewalk in front of te Austin Steet shope and acrot he street from aten-story apartment building alld the Mowbray. suRERFRE FOOTE] “The asatat, whose name was Winston Motley, retreated to his car white Corr parked at the cut some sty yards ay: He pat the erin reverse and backed it down the Hock, passing out of view: Genovese, ieanvile, staggered to er fet and made her way around to the back of er being But in sort time Moseley re tured, He sexually ssnlted hr and stabbed her again, leving Geo ‘esto de. Then got bakin sear and drove home Like Genovese, he was young went)-nine years ol, and be too lived in Queens is wife was opstered ase they had two children. On the dive home, ‘Moseley noticed another car stopped at a eight, driver sleep at the whee. Mosley got out and woke the man. He did hurt or rob him. The next morning, Mosley went o work 5 us The crime Soon became infamous. But not becase Mosley was & paychopath- seemingly normal fanily man who, ldhough he had no criminal record, turned oat to have a history of grotesque sexual vo~ lence, And it wasn? Beane Genovese was clorfl character herself ‘stave manager who happened to hea lesbian and he a prior gam- ‘lng arest. Nor wast because Genovese was white and Mosley was Mack, “The Kitty Genovese murder became infos because of an article published onthe frontpage of The New York Tes. bag ike this: For more than hafan howr 38 reiectabl law-abiding eit sens in Queens watched a iltallt and soba woman in tee separate tacks in Kew Gardens... Not one peron telephoned ‘he police during the casoult one wine called after the woman was dan “The murder tok about het ve minutes fom tart to Bash “IE ‘woh been called when efit attacked” said police inpecton the ‘woman might not be dead now” ‘The police he interviewed Genovese nels the morning after ‘the murder, and the Timer’ reporter reloterviewed some of then ‘When asked why they had intervened ora least elle the police ‘hey offered a varetyofacuss "We thought itwasa loves’ quarcel” “We went to the window to se what ws happening but the ih from our bedroom made dificult see thesret” “Lows tired. [went backto bed” “The artiele wasnt very lng—burely fourteen hundted words—but it impact was immediate and explosive. There seemed to be general agreement thatthe thiry-ightwitnste in Kew Gardens represented ‘new low in human dition. Pobicans, thoologans and editorial ‘writers lambasted the neighbors for thei apathy. Some even called forthe neighbor addresses tobe pblishe so justice ould be dan, The incident so deeply shook the nation that over the next twenty eats inspired more academic research on bystander apathy than the Holocaust "To mark the thiteth anniversary, President Bill Clinton visited |New York City and spake shout dhe crime: “Il sent cling message out what had happened at thet time insole, suggesting that we were each of us na simply in danger bt fundamentally alone” ‘More than thirtfve years ate, the hora lived on in Te Tipping Point, Maesin Gladwell groundbreaking book abou oil behav, ss an example ofthe "bystander effect” whereby the presence of ml tile winesss ata tragedy ean actully dit intervention, “Today, mone than forty years later, the Kity Genovese saga p- oars inal ten ofthe top-selling undergraduate textbooks fr socal psjchology. One text describes the witeses remaining “their win- ‘dows fascnation or the 30 minstes took her asailant to complete his gray ded, during which he turned for thre separate attacks” wom earth oul thirty-eight poopl stand by and watch ashe neighbor was brutalized? Yes, economists always tlk about how self fnterested we are, but oes thls demonstration of lf interest pract- cally dey logs? Does or apathy ely run so deep? “The Genovese murder, coming jst aw months after President John F. Kenney srasinaton, seamed to signal a sort of socal poe ‘ypoe. Crime was exploding in tes all acroxe the United States, and ‘noone seme capable of sopping or decades, the ate of violent and property crimes in the United ‘States had been steed ad relatively low. Bat eves began to sein the sidh1950s By 1960, the erime ate was SO percent higher than it had ‘een in 1960 by 1970, the rat had quadrupled. why? was hard os. So many changes were simultancceay ripping ‘trough American society in the 19608~a population explosion, & _somingan-nithoritarian sentiment he expansion of cit rights, 8 wholesle shift in poplar eulture—that it wasn cay to iat the factors diving crime. Imagine, forinstance, you want to know whether ating more eo- plein risa realy lowers the rime rate. This question ea obvi sit may som. Perhaps the rsoares devoted o catching and jaling criminal ould have been used more producti: Perhaps everytime ‘bad gui pt aa, another eiminal erupt take is place ‘Toanswer thi question with some ind of let etait, whet you rally Uke to dois eondsst en experiment. Pretend you could randomly sleet group ofitates and command each of them trelease 10,000 prisoners. Arthe same tne, you could randomly see differ ent group of tates and have them lack 10,000 peop, misdemeanor sffenders perhaps, who aerwise woudst hive gone to pls, Now sleback, walt few years and measure te crime ratein those two sets of tates. Volt You've jst run the kindof randomize, controlled ex periment that ts you determine the relationship between variables. Unfortunately, the governor of thoe random state probably ‘would ake to kindy to your experiment, Nor would the people you ‘ent to prism n some states othe next-door neighbors ofthe prism er you fved in ls. So your chances of actually endtng this experiment are zero. ‘Thats why researchers often rly on what fx Anown asa natural experiment, ae of conditions tha minie te experiment you want to cond bt, for whatever reson, cnet. In this stance, what you wants a radical change in the prison population of arious states for reasons that have nothing to do with the amount of crime in those apply, the American Civil Liberties Unlon was good enough to creat st sch an experiment recent decades the ACLU has fled lewouts ngninst dons of sitet to protst overcroded peso. (Granted, the eee of stats is hardly random. The ACLU sos where rizons are most crowded and whet hs the best chance of winning ‘Bs the crime trends in states sued bythe ACL look very similar to trends other states. “The ACLU wine virtually al of hose cass after which the state it rere to reduce overcrowding by letting some prisoners fe. Inthe thee years afer soc court decisions the prison population in these states fils 15 perce relative the et ofthe aunty. ‘What dothove feed prisoners do? A whole ot of eime, In the thre year after the ACLU wins case, len crime rise by 10 per cant and property evime by percent in the affected states. oI takes some work, but using indirect approaches Ike natural experiment can hep look back the dramatic crime increase of ‘the 19608 and ind some explanations. ‘One major fctr was the cximinal justo ptem tl. The aio of asrats pr crime fl dramatically during the 1960, fr bath property so violent rime Rat ot nly wer the plice etching smalleshare of the ein the courts were les ely to lock sp those who were caught In 1970, acim oul expect spend an astonishing 60 pee ‘cents tine behind bare thar be woud ave forthe same crime cons smted a decade earn Overall the decreas in punishment during the ‘oss toe esponsbeforoaghiy30 percent of the ie in crime “The puswar baby boom wae anater factor. Between 1960 and 1980, the fraton ofthe U.S. population betwen the ages af teen apd swey-four rave by nearly 40 erent, an unprecedented nage | ‘the ago group most a rit fr criminal invoke Bat even such «radial demogeaphe shift can only account for about 10 percent of he ineeas in rime ‘So together, the by boors and te dslining rte winpesonment plain les than hao the crime spike. Altough a ost of other hy pothess have boon advance ielading the great migration of Ae an Americas foe the ural Soath to norther cies ad he return of Vietnam ets eared by war~all of hem combined il cannot ex iain the rime surge Decades ltr, os riminologists emai pe ple “Theanswer might be right info of ou faces, tray television, ‘Maybe Beaver Cleaver and is petare-prfet TV family werent just a casualty ofthe changing times (Leave 1 1o Barcer was canceled in 1962, these year Kennedy was atsasinated), Maybe they were a> tually aaue ofthe problem People have long posited tha lent TY sw lod to violent be- havior; bat that ain ena supparted by data, We are making an > ‘ily different angumest ere. Our claim tt eildren Who grew up vatching ae of TV, even the mast innocuous Family-tendly show, ‘ee more ikl to engage in ere when they Rot le ‘eating this hypothesis en easy You east just compare < random bunch ofkide who watched alot of TY with hose who didn. The ones ‘who were ued tothe TV are sure to dle fom the ober children in countess ways beyond thelr vowing habits Amore blivable strategy might be to compare cities tht got TV carly with thse that gt it uch ae ‘We wrote earir that cable TV came ts dtferest pars of India 1 diferent times a staggered effect that male it pone o mess ‘TV’ impact on rural Indian women. The iil rollout of TV in the United States was een bumper. This was mainly due to a fureat interruption, fom 1948 to 1982, when the Federal Comimuniatons ‘Commission declared a moratorium on new tons co the broadcast spectrum oul be recone Some pace i the United States started receiving signal in the ‘mid-1940s while others had no TV util a decade later. As turns ot there ia stark difrence in crime trends Btwn cts that got TV carly and thse that go it ate. These two set of cites had sme rates of von rime before the ftrodetion of TV. ut by 1970, v= lent vime was tric as high dhe ets that got TV eal relative to "ove that gor I late or propery cme, the earh-TV cites started with much oer rate he 1940s than the ae-TV cies, bt ended up with mack igher rates ‘Ther nay af course be other differences between the eay-TV cite tes and the lte-TV cities To get araund tat, we can compare children born in the same cy, sa, 1950 and 1955. Soi city that got TV in 195, weare comparing one age group that had 90 TV for the ist four ears oflife with nother that had TY the entre time, Bocas ofthe taggered lotrodution of TV, the cutoff between the age gous tha re up with and without Tin thei eal ears ares wii across ‘itios. This Inds to specie predictions about which cites will se crimerise car than others well athe ageof the criminals dng the eines, So did the introduction of TV have any lscernble effect ona given itysevime rate? “The answer sums tobe yes; inded. For every exta year young. ‘ets was exposed to TV in is Set 15 years, we sea pereent n> ‘reve in the numberof property-crime arrests Inter ine and a 2 percent increas in vilent-rime arrests. According to our analss, the total impact of TV on crane in the 1960s was an increas of 50 percent in property crimes and 25 percent viet eines. ‘Why did TV have thie dramatic eet? (vr data offer no frm answers, The effet largest for cildren Whoa esta TV expose from bith t age four: Since most four ean werent watching wolent shows, is hard to argue that con- tent was the problem, Temay be that kde whe watched alot of TV never got properly so- lied, o peer lard to eatertan thomssles, Perhaps TV made the havo wen the things the haves had, een Hit meant stealing them, Or mabe it had nothing odo withthe kids at al maybe Mom snd Dad became dre when thay discovered that watching TV was lotmore entertaining than aking care of the i ‘Or maybe ea TV programs somehow encouraged criminal behav- lor, The Andy Grgith Show, ange hit that bated in 1960, featured friendly sherf who dia carry a gun and his extravagantly inept ‘eputy named Barney Fle Could tbe that al the woald-be criminals ‘who watched this pair on TV coneladed thatthe pie simply weren worth being fai of As atoclty, weve come to sccept that some bad apples wil commit ims, Bat tat stil does explain why none of Kitty Genovese eghbors-regular people, 0d people—stepped i to help. We all witness ats falls, large and small ur about every ay (We may ‘ven commit some ourselves) So why dna single person exhibit al tev on that night in Queens? Aquestin like this may sen ofall eyond the real of econo tes. ure ligidtyerunches and ol pies and eve collateralized debt ‘Bligtionsbut social behavior ke alti? I tht rely what economists 3? For hundreds of ears the answer was no. But around the time of the Genovese murder, afew renegade economists had beg to care deeply aout such things. Chie among them was Gary Becker, whom ‘wore aries, thisbook intedaction, Not sted with ust mex suring the economie ehaices people make, Becker tried to incorporate ‘the setiments they attached to s0ch ccs. Some of Recker most compelling research concerned altruse, He gud, for instance thatthe same person who might be purty slch In business could be exceedingly arise among pepe he knew— though importantly (Becker fan economist fe al, he predicted that altrutm even within a family wouldve a strategic element ‘Years later, the sonomits Dong Berni, Andrei Shleifer, and Larry Sammers piialy demonstrated Beckers point. Using data from a US. government longitudinal sd they showed that an ery parent Ina retirement home ie more key to be sited by his grown children if they arexpeting sable inheritance, But wait, yoo sy: maybe the offpring of wealthy familes are simply more eating toward ther elery parents? ‘A reasonable cogjeture—in which case youd expe an ony child cf wealthy parents tobe expeilly asf. But Ue data show no in reas in retreat vss ifa welt famiiyhas on one grown ‘2d there need tobe fast two. Thi suggests that the vist oe cease bacanse of competition between lings for the parent esate, ‘What might ok ike gon ldashione ntafamii aris may be ‘sort of prepaid inhertange tas ‘Some governments, wis tothe ways af the word have one far 25 to legally require grown children to vst or support thelr agng ‘moms and dad. En Singapore the lw i known asthe Maintenance of Parents Act. ‘Sill, people appear to be extraordinarily altruistic, and not just within thelr wa amis. Ameriansin particular are famously geer- ‘ous donating abou $900 billion yeast charity, more than 2 percent ofthe nations GDP. Jot think bic to the ast hurricane or earthquake {hat killd a ot of poople, and rosll how Good Samaritans rshed forward with het money end time. Buty? Beonomists have teuitonlly assumed tht the typical person sakes rational decision fn line wilh his on selntrest. So why should this ational fllow-—Homossonomicus be sully xed — iveaway some of his hard-earned cash to someone he doce hoow in 1 place he cant pronounce a return for nothing mone than a warm, fry slow? Building on Gary Becker wor, new generation of economists locdod it was time to understand suis in the world age. But how? How ean we ow whether an ats arnt orl sevig? If you help rebuild neighbors bar, ist because yous a moral person for because you know your own barn migh bur down someday? Whea, donor gives millions to hala mater i because he cares about the pusult of knowledge or because he gts he name plastered onthe football sadiom? Sorting out suck hing the real welds extremely hard, While it is casy to abserve actions—or inthe Kity Genovese ease, ination — 'tigmach harder to understand the intentions behind an ation ‘sit posible to use natural experiments, ke the ACLU-prison se rao to measure altruism? You might consider, for instance, ooking ‘ata series of calamities to see how much charitable contsbaton they | prods But with so many variables, ft wuld be hard to ease out the ltr fom everything ele eripling sethquae in China not the sume asa scorching drought in Atica, which snot these as devastating hurricane in New Osean. Hach distr hast wa srt of appeal™and, just a important, donations are heal influenced by media coverage. One rocet academe tu fund that a given aster recived an 18 percent spike in carte ai foreach seven- Ihundredword newspaper article and 19 percent spe for every sn seconds of TV news coverage (Anyone hoping to raise maney for a ‘Third World disaster ad better hope it happens 09 tow news day) ‘And sich dates are by their ature anemalies—cspecally noisy neste Shark ttacks-that probably doa have much x xy about ‘urbasline lei. Tinime, howe egade economists tok diferent appro since _ltrism ie Bard to measure nthe real wos, why no pea way ‘the real wollen completes by bringing the subject nto he Iaborstry? Laboratory experiments ar of course 2 pl of the physi sence tnd bave been ine Gallen Gall old bronze ball down length of | ‘wooden ming to test his theory of acleraion. Gallo bleed corey at ned out—that x smal eetion The is could Tea toa beter understanding ofthe greatst creations known to humankind: the earths fires, the oder ofthe skies, the workings human fetal More than thre centuries later, the physicist Richard Feynman resserted the prise ofthis bali. “The tet of all knowledge is ee evlonent” he ad. Experiment i the Sle judge of sent truth “The electricity you se, the ccesteral drug you swallow, the page or screen or pee fom which you are consuming these very words {ey areal tho product of great del of experimentation Economists, however, have never been as reliant onthe ab: Most ‘ofthe problems they taltlonally worry aboot—the effet of tax in- ceases, for instance othe cass of nation are dificult to captare ‘here, But if the ab could wnravel the sient mysteries of the un ‘verse, surely could help figure ut something as benign a atrism, “These new experiments typically took the frm of «game, ren by college prolssors and played by thir stents. This path had Deen pve bythe beautiful mind of John Nash and ater economists who, inthe 1980s, experimented broadly with the Prisoners Dilemma, 2 ‘ame-theory problem tht came tobe seen as asi tt of strategie ‘cooperation, (It was invented to glean insights bout the mucear standoff between the United States andthe Soviet Union) By the earl 19805, the Prisoners Dilerims had nspzed ela game called Ukimatum, which works a fllows. Two players, who remain noaytmous to each ott, havea onetime chance to spit «sum of| ‘money. layer (etcall her Annika) ven §20 ands instructed to ‘fer any amount, fom $0 to §20, wo Payer 2 (wel ell her Zod. Zelda must decide whether to accept or reject Annika offer. I she accepts, they split he money acoyding to Annika fer, But eh re- Jets, they both go ome empty-handed Roth players know al ese ‘rues coming ito the game “Toan economist the strategy obvious, nee evens penny is more ‘lable than nothing, it makes sense fer Zlda to accept an offer as low ar peany-and, therfore mas sense or Anat fer just penny, keeping $19.9 for ers ‘Bat, commits be darned, thats not how normal people played the game. The Zelda usualy rejected offers below 62, They were ap- _sretly so dsgusted bya lowball fe that they were wing pay to ‘expres their dist. Not tha lowbll offers happened very often. On average the Annika offered the Zeldas more than $6. Given how the ‘ame works, an offer this arge was early mean to war reetion, ¥ ‘ott an verge of 56~slost thing ofthe total amount~scemed rity generous, Dos that make tari? Maybe, but probably not The UMietonn player making the offer ‘as samething to gain-the avoidance of tejetion—by giving more enero: As often happens nthe rel wo, semingy kind bea ‘oes in Ulimatam areineatecaby ed in with potentially selfsh mot inte, therfore, «new and ingenious varlant of Ukimatusy, cis one called Dictator. Once again, small pool of mony is divided be teen two people, But in thisease only one person ts tomake a desi sion (The the name: the ltator Uv oly payer ho matters) ‘The original Dictator experiment went tik this, Anoka was ven {320 and told she con pit the money with some anonymous Zelda in one of two wa ( right down the mile, with each person geting '$10; a2 with Annika keeping $8 and giving Za jot. Dictator wa rian nits simpli. Asa one-shot game between, to anonymous partes, t seemed to strip out all the completing factors of real-word altruism. Generosity could not be rewarded, nor ‘oa scenes be punished, Beease the second player Cho one who vas the dette) had no recourse to punish the dictator ifthe dts tor acted selfishly. The anonymity, meanwhile, eliminated whatever personal feng the donor might hae fr the relict. The typleal Amer, fr instance bound to fel diferent toward the viet of Hurviene Katrina than the victims of Chinese earthquake oF _Avican drought. She also kel to fee ferent about a hurricane tim and an AIDS victim. Sothe Dictator game seemed ogo stright tothe coe of ur altru- ‘atic impulse How would you play Imagine tit yout the ditator faced with the choo of ving soy hal of your $20 or giving just 62 ‘The os ae you would... divide the money evenly. That's what (Rrerencovome| thee of every for partipants did in the fst Ditto experiments, Amazing! Dictator and Ulimatum yee such compeling results thatthe ames soon caght fr in the academic commun. They were cone Ahueted hundreds of times in myriad versions and settings, by eeon0- sist a well as pechologits, sociologists, and anthropdogits. Ina landmark study published in book form as Foundation of Human Scaity a group of preeminent scholars traveled the world to tet al- teal in ieen small-scale societies, icing Tanzanian banter _atherers, the Ache Inds of Paraguay, nd Mongol oa Kazaks in western Mangia As ituens ut t dah matter ftheexperinent was ru in western Mongolia or the South Side of Chicago people ave By now the game ‘wat usually configured so that the dietstor could give any amount (rom $0 to $20 rather than bing United to the orginal two options (620810, Under this construc, people gave on average about $4, ot 20 percent of tei mone: “The message cauldo' have been much clearer: human beings {indeed seemed tobe harired for altrism, Not only was this conea- ‘on upliting—st the very least acemedt india that Kitty Geno- ‘esc neighbors wore nothing but nasty anomaly—but it rocked the ‘ery fusion of traditional economics. “Over the past decade” Foundations of Human Socialty classed, “esarch in experimental sonomis has emphatically falsifed the textbook representation of Homo economia” "Noneconomists could be fren if they fle ike ecowing with sstisfction. Homo ecomomieus, that hyperritions, selinterested creature that dismal siete had embraced sive the beginning of| ‘ime, was doa ithe ever realy existed), Hallejah! this ew paradigm—Hom altristcws?—was bad aso trade tional canomits, looked god to neatly everyone els, The pian tog and dsster rele sector in particular had reason to cheer. But ‘ere were far rode implications, Anyone fom high goverment fll down toa parent hoping to raise civerminde children had to ‘gin inspiration fo the Dictator ndings—for If people are innately leu, then Solty should beable to rly am its altruism to salve een the most exng problems. ‘Consider the case of organ transplantation. The fist svecesfal Kidney transplant was performed in 1954. To the layperton, looked athe ike a mira: someone who would surely have dled of kidney ‘ailarecoul now eon by having a replacement organ punked inside him, ‘Where did eh new kd come fom? The most convenient source vasa fe cadaver, the vit ofan automobile acident peskaps oF sone other type of death tht eft bind healthy organs The at that ‘one person's deat saved theif of aneher only heightened the sense ofthe miraculous ‘Bt one ime, transplantation became vit oft own sucess “The normal supply of cadavers coulda keep up with the dewand for ‘ryans In the United Stats the ate of traf faites was declining, which was great news for drivers bot bad news fr patents avaiting a lifesaving kidney. Atleast ntoreycedeths kept wp thanks in part to many sate Ls allowing motores, a6 transplant sargeons call them, “énoreyiss"—to ride wut helmets) In Barope, some ‘ounires pase laws of “presumed consent rater than requesting that person donate his ong i the even of an aelent, the state assumed the right o harvest his organs uns e rhs Family speci cally opted out. But tens, there were never enough Kidneys to go sot ortunateyetdaver arent the oly souee of organs We are born with wo Kidneys but esd only one to lve—the second kidney i @ hap eveutonary artifact—which means that a living donor ean surrender one kidney to save someon’ if and stil ary on & normal ie msl, Talk bout altruism! Stories abounded of one spouse giving & kidney to the other, brother coming through for le sister, grown woman for ber aging patent, even kidneys donated betwen long-ago playground Irene ‘Bat what fou were dying and dda’ have lend or relative willing to give you kidney? ‘One country, ran, was zo worried about the kidney shortage hat it enacted program many other nations would consid barbaric. I sounded lke the kind fen some economist igh ave dreamed up, Atrank om is ele in Home economics: the Iranian government would pry people to give up a kidney, oughly 8,200, with an ad ‘ual sm pai by he kidney recinient. 1m the alte States, meanwhile, during 1985 congressional bar Ing, an enterprising doctor named Barry Jacobs described his own y-for-ongan la Hiscompanyntrnstinal Kidney Exchange, id, ‘woul bring Tid Wold cians to the United States, remove one of their kidneys ive them some money, and send them back ome. Jt cobs wag savaged for even raising the id. Hs most vigorous erie was 1 young Tennessee congrestian named Al Gore, who wondered if thes kidney harvests “might be wiling to gre you a cutrate price Just forthe chance to ae te Statue of Liberty or the Capel or sone ‘hing? ‘Congress promptly pated the National Organ Transplant Act ‘which mado egal Yor any person to knowingly aequle, cele ‘otherwise tranaer any haman organ for alble consideration for se Inhuman transplantation.” ‘Sure out ike Iran might et people buy aod sell human on ‘ns a if they were lve chickens a a market. But surely the United ‘States had nother the stomach nor the sed for such a desperate -mancuver. After al, ome ofthe nation’s most bilan cade = scarcas had sconically established that human beings are tru tie by thee very natare.Pehaps this altruism was just an ancient ‘voltonaryIetover ike that second Kdney. But who eared why i ‘existed? Th United States woud lead the way, alight unto the nations “lying proudly on out inate arse to procare enough donated Kd ney to sve tens of thousands olives very yea, “The Ultimatum and Dictator games inspired @ boom in experimental ‘economies, which n turn inspire a new sbfld calla behavioral eo nomics. A blend of treditonal economics and peyhology, it sought to capture the elusive and often puzling, human motivations, Gary Becker had been thinking about for decades. ‘With their experiments, behavioral economists continue to sally ‘ae reputation of Homo economics, He was starting took le sl terested every dyad if you hn problem with tha concusion, ‘wl just lok at the ltest Ib results on aus, cooperation, and fates ‘One of the most prolife expersental economists among the new seeaton was a ie of Sia Pai, Wisconsin, named Joa List, ‘He became an economist by accident and had afar less policed aca- demic pedigree than his pers and elders He came from a family of tracker, "My grandfather move here from Germany, apd he was @ {armee Listy. “Then besa tha truckers were making more money ‘thar be was ast o take his grain to the mil so he decided to sll ‘everthing and buy one tock” ‘The Lists were smart, hardworking athlete family but academics ‘were not of paramount importance. Johny father started driving trucks when he was twelve, and Jolin oo was expected tin the fam- iy bosness ut he rebelled by ging to cllge. This happened only esate he exraed a pati golf and academe achlarship to the enFREAKOROMICE] University of Wisonsn- Stevens Pint. Daring school beaks held help his father unload ealf feed or al aloe of paper goods down to Chi ‘ago thre snd. hours aay. ‘Daring of prastioe at Stevens Pont, List otced a group of profes ors who had ime to ply gous about every fernoon They aught scons, Tha when List desided to bocome an economies profes sor to, (ft helped tht he hed the subject) For graduate school chase the University of Wyoming. 1 was asaya top-tier program, bot even so eft overmatched. On the st day, when tudes went around the clastoom and gave abt of per- sonal background, List et everyone staring 2 him when he said td sgraduatod from Stevens Point. They had al gone to place ke Colum. bi and the University of Virgina. He decided his only chance was to cutwork them, Over the next ew years he wre more papers and tak ‘more quliffing exams than anyone elit—and, ke many young econo. nit, started to dabble with lab experiments ‘When t was time to apply for x teaching jo, List sent out 180 ap- pleations. The espns wa, shall we a, ute. He di land ajob at the Universgy of Centssl Florida, in Orlando, where be took on 2 hens tachingload and ako coached the meas and women waterski- lng tama. He was a blue-collar economis i ever there was one, He ‘vues wring paper ster paper and ronninglots of experiments his vaterskiees ve qualified fr the national championships. _Afler fe yeas, lst ws nied t join Veron Smith, the a ‘the of economic lab experiments, at the University of Arona Theob ‘would py $63,000, considerably more than his UCF salary. Out of loyalty, List reste the offer to his dean, expecting UCF oa east match the ofe. “For $5,000," he was tld, "wo think we can replace you” -issay st Arizona was brio forhe was soon rerste by the Uni- ‘erty of Marland. Wile teaching thee, he lio served onthe Fest y ents Counc of eanomic Advisors: List was the lone economist on | forty-1w0-person US deletion to Indinto help negotiate the Kyoto Protool He was ly now Semly atthe center of experimental esonomes, a fed that had never oon hotter In 2002, he Nobel Prize freon ier was shard by Veron Sith and Daniel Kahneman, pyehlogist whose research on decision-making nid the groundwork for bebsw- oral economics, These men and others of their generation had Bult & canon of research that fandamentlly challenged the sats quo of| clas economies, and List was following Sey in thee footsteps, ining variants of Dicttor and oer behaviorist abgames But since his days at Stvens Point, be had also been condone quirky field experiment—stuies where the partipants dt know sn experiment was going anand found tht the Ib fnings did Always old up in the rea weet Economists ae known to adie ‘heorstie! prof chs the old quip: Sure, i work in practi, bu hows orn hry?) Some ofhis most interesting experiment took place at baseball. card show in Virginia List had been attending such shows for ears [Asan endergrad he sld sports cards to earn cash, driving at far 28 ‘Des Moines, Cheago, or Minneapolis, wherever there was good market, Tn Virgina, List cruised the trading floor and eandomlyrecrutad customers and dealers, aking them to step Into a ack rom fr an ‘conomies experiment It went lke tis A customer would sate how uch he was wlling to py for single baseball eard, choosing from cove of ve prices that List etabshed. These offers ranged fom low ball (9 to premium ($50) Then the dealer woud give the estomer ‘card that was supposed to corespnd to the offered price. Every customer and dele did five sush transactions, though with differ ent partner foreach round, ‘When the customer has to mame his rie st—tke the white men ‘who visit Chieago street prosttates—the dealers plainly ina postion to cheat, by giving card thats wort les than the offer The dealer i «so in a better poston to know each earls tre worth. But the buyers Imad some leverage ton: f hey thought the sellers woul eest, they ‘oul simply make lowbal offer each round, So what happened? On average the customers made high fers su the desler fared card of commensurate ve. This soar that ‘tho buyers tasted the sellers pi the bayer tea was rewarded fy ‘This did surprise List. He had simply demonstrated tha her sults you get in lab with ole students eld be replicated outside the ab with sportcard traders atlas when the partcpants know a researcher carefull recording ther ations ‘Then be ran a diffrent experiment, out on the rel trading or. ‘Once again he recruited random customs Buti tine he had ther ‘approach dealers at tele booths, and the deslere dia know they were Deing watched, The protcal was simple. A customer would make a desler one of two offs: “Give me the best Frank Thomas card yu can for $20" or “ive me the beat Frank Thora card you ean for 865° ‘What happened? ‘Unlike theiseropuous behavior in thea oe, the desler oni ‘el sipped ff the asters, ging them wer quality cards tha the fer warranted. This was true forthe #20 offer andthe Sf. In the dat, Lis found an interest: the ota dealers cated ‘mor often thn the lal This made Sense. Alocl dale was probly more concern with rotetnghs reputation. He might even have baen. worried shoot erbution—s bse bat pede the han, perp after castomer went home, got online, and found out hed ben busted “The rade flor cheating made List wonder if perhaps all he trust” ‘ad "Tirness hl witessed in the back room Were tus and fair seat al, What If they were just product ofthe experimenter scrutiny? And what ifthe same was tre for alti? Despite all the lab evidence of true elles by Mis pote and elder, Lst was sept. His on eld experiments pointed in i ferent éiretion, as did his personal experience. Back when he was nineteen year ol, he dlivered a load of paper goods to Chicago. Hie siltind, Jennifer, came along fr the ride (Fey ate marey ex have ive kids) When they gt to the warehouse fur men were nthe loading bay, siting on a couch, was the dead of sumer and pons Ingly hot. Ono man sald they were on break List asked bo long the break would ast. “ll we doit know the ms ai, "s0 why dont you just tart un- wading youre vas custamary for warehouse workers to unload 2 trucker truck ort east help. Ply that wasnt oing happen. ‘Wal fyou guns dont want op thts ine” List said Just ge rmethe keys tothe kl” “They laughed and tld hin the hay wore ost ‘So ist slong with Jenifer, bogan unloading the truck, oxy box Drenched in sweat and thoroughly mserabl, they Ibored unde the ‘mocking es ofthe four workmen Finally only few bores were ef (One ofthe workmen suddenly found the heys tthe fri and dove Rover to Listhteack, “Encounters ike this had made John Lit seroaly question whether ltrs roy runs wid through the vlns of humankind s Diettor and othe lab experiments argued. ‘Yes that research had won meh acim, ining Nobel Prize ‘Bt the more List thought abou if, the mone he wondered if pethaps thos findings were smpy—well, wrong 1 2006, thanks lng toi fe experiment List was fered a ten ured profisor postion atthe Univesity of Chiago, perhaps the most storia eonomics proge in the word. This was supposed to hap pen, I i neil inexorable law of academia that when professor lands tenured job, he doce 2 a an stitution les prestigious than the one where he big teching and alo less pretigios than where th ceed his PAD. John List, meas, was like asim who swam downstream spawn, ito the open watar, Back in Wisconsin, ‘is uly was unimpressed. “They wonder why Ie filled 9 mise bye anys, “why Tn ntl in Orlando, were the weater is realy reat instead of Chicago, where the crimes ell high By now be knew the Iterator on aris experiments as well snyone. And be knew he real world ait better. What is paring” be ‘wrote, “is that ether Lr any of wy fy fiends (or tei fa lies of fiends) have ever received an anonymous envelope stuffed ‘th ash How ean tis be, given that sores of stents around the ‘word have outwardly exhibited thir preferences forgiving in bora: tory experiments by sending anonymous eash gifs 10 anonymous soul" 80 List set out to dette determine if people are skesstie by ture. His weapon of choice was Dictator, the same too hat reted ‘the conventional wisdom, But List ad a fw maifcaton up hissleve. "This meant roeuting a whole bunch of student vlanters and run nig fw diferent versions of the experiment ‘He hegan with classe Ditto. The rt player (whom wel eal An nike once again) was given some each and hav decide whether to ‘ve now, sme, of even al oft 10 Some anonymous Zelda List found ‘that 70 percent ofthe Annikas gave some money to Zea, and the ‘exage‘Sonation’ was about 25 percent ofthe total. This result was per ‘ect inline wit thetypeal Dictator findings, and prfety consistent swith leis, In the second version, List gave Annika anther option he could still gve Zelda any amount of her money but, be prefered, she could insted take $1 fom Zelda Ite dictators wer lust thie wes tothe ame shouldnt matter a al should onl aft the people who ‘otherwise would have gives noting All List id was expandthe dit tors “choice st” ina way that was irrelevant forall but the stings of players. ‘But only 3s percent ofthe Annas in this modified, steal-e-dola- \yowswant version pve any money to Zelda. That was us al the rnumber who gave in the original Dictator, Nemly 4 percent, mean while, didat lve a penny. while the remaining 20 pereen ook a dolar from Zelda, ey, what happened tall thealtulsn? But List in stop there. Inthe thi erson, Annika wae that ‘Zelda had boen ven the ame amount of money tha she, Annika, ws fiven. And Anna could sel Zelda’ entire payment-—or ise pre- fee she could give Zelda any potion of her own money. ‘What happened? Now only 10 percent ofthe Annas gave Za ny money; while move than 60 perent ofthe Annikas took ftom Zelda, More than 40 percent ofthe Annis tok al of Zlda money, ‘Under Lint guidance, a band of auists had suddeny—and quite easily—been tured into a gang of hives. “The fourth and final version af Lists expetiment was deta 19 the thint—the dictator could steal the otber players entire pile of oney—but with one simple twist. Instead of being handed some ‘money to play the game, a 8 standard in such lab experiments, An nika and Zelda ft ad to work for. (List neded some emelopes stuff for another experiment, and with lite researc fands he ‘wae ling two hide with neste) After they worked it was ime opi: Anita tl had the option ‘of taling al of Zelda money as moe than 60 percent of th Annikas Ai in the previous version. But no; with Both payers having earned their mone, only 28 percent ofthe Aastkas took from Zelda. ally twortinds ofthe Annkasnether gate nor 0k a pena ‘Sowhat had John List dane, and what doe it mea? He upeada the conventional wisdom on altroem by introducing ‘ew element toa clever lb experiment to make took ait mae ike the ceal word, If your only option in the Ia is to give away some oa; you probably wil atin the real wo, that rarely your only ‘option The inal version of hs experiment, withthe envelopestsfing, was perhaps most compeling. It suggests that when a person comes into some money honesty and bllews that another person has done the same, she neither gives aay what she eared! nor takes what oes belong het, But what about all the prizewinning behavioral economists who td dented alruam i the wil “think its prety clear that most popl ao misimerpretng their data List sp. “To ma, these experiment pot the kif int 1s cer tainly not rust weve heen sexing” ist had puistkingly worked his way up from rock divers to he cuter of an lite group of scholars who were rewsklng the rules of ‘conomiebebator Now in ord to sa tue to is Siete prin ‘les he had to betray th, As word of is dings began to tickle ‘out be sddenly became as he pots ‘ley the most hated gay in thee” List ean atest be contlad by knowing tht he iralmost certs cor- rect Let consider some ofthe forces that make such lab storey unbe- liebe. “The it selection bias. Tink back othe tricky ature of doctor report cards. The best eardilogist in town probably attract the sek st and most desperate patients. So if youke keeping sore sly by death rate, that doctor may ge filing grade eventhough eee lent. ‘Stila, are the people who wntee to play Ditator more coop erative than average? Quite likly yes, Scholars long before John List| Pointed out that behayiorl experiments in a college lab are “he ‘lence of us those sophomores who volunoe to partpste io re search and who also keep thei appointment withthe investigator” Moreover, ich vlunters end tobe "sient do-goodee who "typ telly have... higher need for approval and lower authoritarian fam than non-vlunters” ‘Or maybe youre no do-gouder, you simply dont partite a {his Kind of experiment. That what List observed using his baseball card stady. When he was meruting rofuntoes forthe st round, hich he leaey Wei san economies experimen, he made note of which dealers detned to participate in the second round, whea List dispatched customers ose if uawiting dslrs would rip ther (fhe ound that the dealers who declined to participate i the ist round wer, on average, the bigstchestes, Another fctr that pllts laboratory experiments is seating ‘When seleait brings a lamp of rane ito lab, or a ealwores ora colony of bacteria, that obj et likely to change ts behavior Just because its being watched by someone awit ab cost or human beings however, srotny hae a power effet, Do you run ard ight when there apie caro, insreasingly these days, ‘+ mounted camera—at the imersetion? Thowght ot. Are you more kelp to wash your hand in the of restoom fyour bos alreny | ‘washing hen? Thowght 0. ‘Our behavior ean be change by even sublr levels of srutny. At the University of Neweastle upon Tyne in England, «psychology pro- fessor named Melissa Bateson surrepttosl an an experiment inher ‘own department bres room. Customs, fcuty members paid for ‘ole and other dink by dropping mone into an honesty box" ach ‘week, Batson posted a new price Ist. The peas never changed, but ‘he small photograph top the ist did. On od weeks there was = pic- ture of flowers; on even week apa of human eyes. When the eyes vere watching, Batevony colleagues lft nearly thre times ae much ‘money inthe honesty box, So the nex ime ou Iai when a bid is frightened off by a silly searserow, remember that scarecrows work ‘oahaman beings too. How does sertiny affect the Ditator game? Imagine youre a “stadent~a ophomore,probably—whovluntaored to play. The profes sor running the experiment may stayin the background, bt hespainly there to record which choices the parpants are making. Keep ia sind thatthe stake ze relatively low, just $20, Keep in mind also that yon goth $20 us for showing ups you did work fr the money [Now yu ae asked if oid ike give soe of your money toa nonymous student who dda get $20 fo free You dia sell want tokeepallthat money, did you? You may no ike thie pastel pote sor you might even actively dle hambut no one wants to lok ‘heap in font of somebody else. What the heck, you decide 1 give any feof my dollars. Bt even cocked optimist woul ell ‘hat altrui Im addition to serutny and selection bias, there me more factor to ‘onsider Haman behavior nuenced by dating complex set of| Incentives, oa noms, framing references, end the lessons gleaned ‘rom past experience—in a word, contet. We act as we do because, sven the choles and incentives playin a particular ireumstance i ‘ecm most productive to act that way Tis i also karen asst ‘behavior which what economics ial about. "ein tha he Dictator partlipants dda Bbave in content, They id But the lab conte is unavoidably artical. As one academic researcher wrote more than «century ago lab experimen hve the power to turn a person Into “a stupid automaton” who may exhibit @ “ost wigs oasis the investigator in every posible way by reporting to him hove very things which he most age tod” The papas Martin Orae warned thatthe lab encouraged what might best be called forced cooperation “us bout any request whieh ould conceivably be asked of the subject by «reputable Svetigaton” he wrote,“ lagimized bythe quasi magical phate This ian exper ‘Orne point was borne out ata spectacuary by at east wo inf ‘mous Ib experiments Tn» 961-62 study designed to understand why [Naz ofcers obeyed thee super! brutal onder, the Yale pyehoo sist Stanley Agra got volunteers to fllw his structions ad a ‘minke a series of creasingly pnfal etre shocks—at leas they ‘howgh the shocks were pall the whol thing was a setup—to un seen lub partners. In 197, the Stanford pachologst Philip Zimbardo ‘condita prison experiment, with Some volunteers playing guards and others plying inmates. The guards started behaving so sdit- cally that Zimbardo hat ht down the experiment ‘When you consider what Zimbardo aed Milgram got tei ab ol ‘une todo mo wonder that the estemed researchers who ran ‘the Dictator game, with ts innocuous goal of transfering fo dlls irom one undergrad to another, could, a5 List pts it, “induce almost any level ging they desi” When you loka the word through th eye ofan eanomit ke John List, you realize that many semingly altruistic acts no longer sem 50 altri 1 imay appear altrusde when you donate $10 to your lel pubic. dosti, tin exchange you eta ear of guilt-free istening and ‘yutre Inky canvas tote ba). US cizens are easy the words leaders in per-capita charitable contebaton, but he US. x code ie among ti nt generous in allowing deductions for those contrib ‘Most giving sa economist calli mpune altruism warm glow lira. You give not only because you want to elp but because it ‘makes ya look good or el god, o perhaps elles ha ‘Consider the panhandle. Gary Becker once wrote that most people ‘wn give money to panhandlers do so only because “the unpleasant sppearance or persuasive appeal of beggars makes them fel uncom fortableo gully" That's why people often erste stoet to avai a panhandler but arly crossover to visit one ‘And what abou 1S. ongan-donation policy, based on ts walling ti a altraism wil satisfy the demand fo orans—how has that worked oa ‘Not so well There are currently 80,000 people in healed States ‘Awaiting ist fr new Kidney, ut onl some 16.000 transplants will be performed this year. This gap gtows larger every yea. More ‘than 50,000 peopl on thelist have dio over the past twenty years, swith at least 13,000 more filing off se Tis as they Beeame 100 ill 16 have the operation altruism were the answer, this demand for kidneys would have bows met bya ready supply of dows. Bu it hasnt ben. This hs ed ‘some peopleinlading, not sorisingly, Gary Backer—to ell for 8 ‘welseplited marke in human organs, whereby a pens who sr ‘renders an organ woud be compensated in cash, a cclege scholarship, ‘ta break, Some other form. This proposal ha sous boen gested ‘with widespread repugnance and ses for now poitally untenable Recall, meanwhile, that Iran estashed «silar market oesty thirty eats ago ANough this markt as is avs, anyone in Iran needing kidney transplant doesnot have ogo om a iting Hist. The demand for tranplantable Kidneys is being lly met. The average “American ray not conser ran the most forward-thinking nation in ‘he world, bt stl ome cre shold goto the onl country that has eognized iru for wha it —and, importantly, Whats ot olen List research poves anything, i tht a question Ike Are people natal arse” the wrong kin of estion to ask, Pople arent “ood? “bl” Pople ae people, and they respond tinea tives They can neatly always be manips for good or iif only yo find the right ves So are human being capable of generous, sles, even heroic Be ‘avi? Absolutely Are they aio capable of heartless acts of apathy? Absolutely "The thirty-eight witnesses who watched Kitty Genovese: brutal murder come to tind, What's so pling aboat this ease show ite truism was required for someone to have called the police from the safety of his cher home. That's why the same question—how could ‘ose people have acted so hrsby?—has lingered all hese year. But peeps ther a better question: did they act so har? “Thefnsation for nearly evrything ever wetteno uid about Geno ‘ese murder wat that owen New York Times arte, whieh ‘vas’ pblshed until two weeks ater the cre. Ithad been cacsved at alnch between to min: A.M. Rosenthal, the papers meto citar, and Michael Joueph Morphy the iy’ paie commissioner. ‘Genove’ ile, Winston Mossley, was already under acest and Ina confessed to the exe. The story was bignews especially nthe Tine, twas jus another murder, way oat fn Queens, no the Kind of thing pape af ecord gave much pace, Strangely though, Mosse also confised to a second murder even ‘og the police ad already arrested adiferet man for that crime, What about that dosble confession out in Queens” Rosenthal asked Morphy at lnch. “What that story all about anyway?” Instead of nswering, Murphy changed the mbjec. “That Quoens sory something ele" heseld, andthen told Rosen- ‘hal that eity-cght people had watchod Kitty Genovese be murdered ‘without aig the pole. “Thirty-eight” Rosenthal asked "Yes, hrty-ight” Murphy sid "Tve been in his business Tong, ‘ime bat this bets everyting” oveshal the later wrote, was se thatthe Commissioner was exaggerating” Is, Marpy may ave had fit incentive A try boat two men arested fr the same murder easy had the potential 1 eoburrss the police. Furthermore, given the prolonged and brutal ‘ature ofthe Genenese murder, the police may hare been acy about ‘who caoght the Blame, Why hada they been abet sto 2 espe Rosenthal skepticism, he sent Matin Gansberg, «lng time copy eitor who'd recently become a reporter, to Kew Gardens Four diy ater, one of the moet inlet sentanees in newspaper history appeared on the Tima from page For more then halfan hour 58 respectable law-abiding it sens in Queen atch killer stalk ond sth women in thre separate attacks in Kes Gardens. or a brandnew reporter like Gansberg and an ambitions editor ike Rosenthal~be ater wrote a book, Thirey-Bight Wiens, about the case ad became the Times tp eitor—it was an unqualified lockbuster Iie often tata pir nly ewepapermen can tella tale that will St the public agends, for decades hence, on tp Ieadvas lve pathy So they certainly had strongincemtivesto tell he sory. ‘The est person to answer hit qvston maybe Joseph De May J ‘sctyyearold maritime leyer who ve in Key Gardens He has an ‘open fice thing Blackhat hazel ees, anda hearty disposition. On ‘brick Sunday morning nt long ago he gave usa oar ofthe neighbor od, "Now the ist attack ocurred roughly in here he a passing on the sidewalk in font of «small shop on Austin Stet. “And Kit atk er ear over ther, nthe tain tation parking the sid, ge turing oan are perhaps thirty-five yards away. ‘Theneishborhod has changed ite sine the ere. The bullies, streets, sidewalk, and parking areas remain as they were. Te Mow ‘ray, a well-kept brick apartment house ail stands acs the street ‘om the soene ofthe st attack De May ved tothe neighborhood in 1974, decade after Geno- ‘ove was killed The murder wasnt samething he thought about such, Several ears ago, De May. @ member ofthe lea historical society, built a website devoted to Kew Gardens ston: After time, heft he should ad a section about the Genovese murder, since it ‘as the only reas Kew Garden was knoven to the outside word f ‘twas knownat ll ‘As gathered old photographs and news clippings, he began to find disrepaies with theofficial Genovese history. The more intent ‘ne econsructed the crime, chasing down legal documents and inte ‘iewing ldtimers, the more convinced he became that the legendary story ofthe thirty-eight apathetic witness was—wel, ait too heat ‘0 legend ike the Iyer he De May disseted the Time arte ad identi six actual eons inthe Sst paragraph alone. ‘Thelegend held that thigh people ‘remained at their windows [uvantnenconomes) tn aseinallon” and “watched a killer stalk and stb a woman in tree separate attacks" "not one person telephoned the police daring the ‘sclt? "Thee story, aevoringto De May, went more lie this: ‘Theft stack occurred at abu 5:20 nat, when most people were asleep. Genovese cia ot for help when Mosley stabbed erin the ck, This awoke some Mowbray tenants, who rushed to thir win- dows, “The sdewalk was not well, sot may have been hard to mike sense of what was happening. As Moseley later tif, “It was late tight apd twas pretty sure that nobody ould see that well otf the window” What someone likely sould have seen at that pont was @ rman standing overs woman onthe ground. ‘A least one Mowbray tenant, a man, shoated out the window “Leave that i alone” Ths prompted Moseley torun Back o his ar, which was parked less than a Block away "Tcoud soe that she had gotten up and wast deed” Moscley tested. He hacked his ear down the street, he sud to aseure is leone pt Genovese struggled to he feet and slowly made her way aroun the back ofthe building, toward her apsrtment entrance, Bul she

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