EconTalk Steven Levitt on Freakonomics and the State of Economics
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Nov 9, 2020 
In a captivating discussion, Steven Levitt, a renowned economist and co-author of Freakonomics, shares insights on the book's unexpected success and its cultural impact on popularizing economics. He discusses the complexities of public trust in science amid the pandemic and critiques the challenges within the academic reward system. Levitt also explores innovative approaches to criminal justice reform and the importance of clear communication in economics, underscoring how accessibility can foster understanding and support for the field.
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The Freakonomics course conflict
- Levitt's chair discouraged him from teaching an undergraduate Freakonomics course to prevent him from profiting from book sales.
- Levitt offered to donate his royalties, highlighting the clash between popularizing economics and academic priorities.
Behavioral economics vs traditional economics
- Behavioral economics' real-world impact is limited, except for defaults (like automatic retirement enrollment).
- Traditional economics tools (incentives, pricing) often hold more power than behavioral “nudges”.
The power of tricking people
- Tricking people into desired behaviors, often through exploiting inattention, can be effective.
- This approach complements traditional methods like incentives and regulations, particularly in non-market settings.
