SuperFreakonomics: A Rogue Economist Explores the Hidden Side of Everything

This theme serves as a fundamental cornerstone for the authors’ exploration of the idea that economic principles can shape decisions in counterintuitive ways. Levitt and Dubner argue that identifying and understanding these incentives can result in greater insight into behaviors that may initially seem irrational, self-destructive, or morally ambiguous. This theme permeates the book, and the authors make it a point to reveal how incentives, both explicit and hidden, drive actions across various domains.

One powerful example can be found in the authors’ discussion of sex work, in which they examine why some individuals choose sex work despite its risks and societal stigma. To this end, they cite the candid personal account of Ally, a high-end escort, who explains how financial incentives influenced her decision to enter the profession. With her education and skills, Ally could have pursued a traditional career, but she found that the significant earnings and flexibility of sex work outweighed the perceived costs. This analysis illustrates that rational decision-making often underpins behavior that society may view through a moralistic lens, with individuals responding to economic incentives like wages, market demand, and time management.

Another strong case involves environmental policies and unintended consequences. Levitt and Dubner explore how incentives created by the Endangered Species Act caused landowners to destroy endangered species’ habitats in order to avoid restrictions, a phenomenon colloquially known as “shoot, shovel, and shut up.