Politics, Social Impact Entrepreneurship and Business Ethics with Neil Malhotra

Freakonomics is a collaboration between economist Steven D. Levitt and journalist Stephen J. Dubner that delves into the riddles of everyday life, from cheating and crime to parenting and sports. The book argues that economics is fundamentally the study of incentives and how people get what they want or need, especially when others want or need the same thing. It covers various topics such as the inner workings of a crack gang, the truth about real estate agents, and the secrets of the Ku Klux Klan, using forceful storytelling and wry insight to challenge conventional wisdom.

The book tells the story of the Oakland Athletics' 2002 season, where General Manager Billy Beane and his assistant Paul DePodesta used advanced statistical analysis, known as sabermetrics, to assemble a competitive team despite a limited budget. The approach, pioneered by Bill James, focused on metrics such as on-base percentage and slugging percentage rather than traditional measures like batting average and runs batted in. This data-driven strategy allowed the Athletics to compete with teams having much larger payrolls, like the New York Yankees, and achieve significant success, including a 20-game winning streak and a playoff appearance.