In the book Freakonomics the authors, Stephen Levitt and Stephen Dubner, takes a novel approach to studying economics, sharing its most interesting research. First they begin with the topic of correlation and causation. According to them correlation means, “A relationship exists between two factors—let’s call them X and Y—but it tells you nothing about the direction of that relationship. It’s possible that X causes Y; it’s also possible that Y causes X; and it may be that X and Y are both being caused by some other factor, Z. ” (8). One the other hand, causation is when one object affects the other object. For example, there is an causation between two things if an increase in one thing causes an increase in the other thing. The authors then
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Ku Klux Klan is a terrorist organization that had been threatening people. However, a guy named Kennedy, writer who was dedicated to end KKK, decided to go undercover and join the Klan in order to reveal its coveted secrets that might help lead to its destruction. According to Kennedy, “The Ku Klux Klan was a group whose power—much like that of politicians or real-estate agents or stockbrokers—was derived in large part from the fact that it hoarded information. Once that information falls into the wrong hands (or, depending on your point of view, the right hands), much of the group’s advantage disappears.” (62) In conclusion, people fear if they know the real information but as soon as they do have the information they would stop fearing and the group abusing information asymmetry will fall …show more content…
However, one thing that stood out to me was from chapter 1 about how cheating impact the sumo industry. When I was reading this section it reminded me a news about the Indonesian national soccer was suspended from the FIFA (International Federation of Association Football) and would not be able to compete in world cup qualifier. This is because of corruption, according to an article that I read, few years ago, stated that the team bribed the referee to let them win. Connect back to this book, it relates back to what’s happening in sumo industry (bribing, making an agreement) just to get what they want by taking the easiest
Ku Klux Klan is a terrorist organization that had been threatening people. However, a guy named Kennedy, writer who was dedicated to end KKK, decided to go undercover and join the Klan in order to reveal its coveted secrets that might help lead to its destruction. According to Kennedy, “The Ku Klux Klan was a group whose power—much like that of politicians or real-estate agents or stockbrokers—was derived in large part from the fact that it hoarded information. Once that information falls into the wrong hands (or, depending on your point of view, the right hands), much of the group’s advantage disappears.” (62) In conclusion, people fear if they know the real information but as soon as they do have the information they would stop fearing and the group abusing information asymmetry will fall …show more content…
However, one thing that stood out to me was from chapter 1 about how cheating impact the sumo industry. When I was reading this section it reminded me a news about the Indonesian national soccer was suspended from the FIFA (International Federation of Association Football) and would not be able to compete in world cup qualifier. This is because of corruption, according to an article that I read, few years ago, stated that the team bribed the referee to let them win. Connect back to this book, it relates back to what’s happening in sumo industry (bribing, making an agreement) just to get what they want by taking the easiest