Freakonomics

Freakonomics:
A Rogue Economist Explores
the Hidden Side of Everything

Hardcover edition
Author	Steven D. Levitt Stephen J. Dubner
Country	United States
Language	English
Subject	Economics, Sociology
Genre	Non-fiction
Publisher	William Morrow
Publication date	April 12, 2005
Media type	Hardback & Paperback
Pages	336 pp (hardback edition)
ISBN	(Hardback), (large print paperback)
OCLC	73307236
Followed by	SuperFreakonomics

Freakonomics: A Rogue Economist Explores the Hidden Side of Everything is the debut non-fiction book by University of Chicago economist Steven Levitt and New York Times journalist Stephen J. Dubner. It was published on April 12, 2005 by William Morrow. The book has been described as pop culture with economics. By late 2009, the book had sold over 4 million copies worldwide.

The book is a collection of 'economic' articles written by Levitt, an expert who has already gained a reputation for applying economic theory to diverse subjects not usually covered by "traditional" economists; he does, however, accept the standard neoclassical microeconomic model of rational utility-maximization. In Freakonomics, Levitt and Dubner argue that economics is, at root, the study of incentives. The book's chapters cover:

One example of the authors' use of economic theory involves demonstrating the existence of cheating among sumo wrestlers. In a sumo tournament, all wrestlers in the top division compete in 15 matches and face demotion if they do not win at least eight of them. The sumo community is very close-knit, and the wrestlers at the top levels tend to know each other well. The authors looked at the final match, and considered the case of a wrestler with seven wins, seven losses, and one fight to go, fighting against an 8-6 wrestler. Statistically, the 7-7 wrestler should have a slightly below even chance, since the 8-6 wrestler is slightly better. However, the 7-7 wrestler actually wins around 80% of the time. Levitt uses this statistic and other data gleaned from sumo wrestling matches, along with the effect that allegations of corruption have on match results, to conclude that those who already have 8 wins collude with those who are 7-7 and let them win, since they have already secured their position for the following tournament. Despite condemnation of the claims by the Japan Sumo Association following the book's publication in 2005, the 2011 Grand Tournament in Tokyo was cancelled for the first time since 1946 because of allegations of match fixing.