A review by davidr
The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life by Uri Gneezy, John List

4.0

This easy-to-read book has two main themes. The first theme is that many of our behaviors are rooted in economics. For example, the authors claim that often, apparent prejudices against certain groups of people are not due to racial hatred, but are due to economics and self-interest. The second theme is that in order to maximize efficiency, productivity, or profits, it is useful to assess all of one's assumptions, and to perform "field experiments". These experiments will entail some costs in the short run, but in the long run will pay dividends.

I enjoyed this book mostly because the two authors, Gneezy and List, are practicing economists. The field that they promote in this book is called "behavioral economics". I have read a number of "pop psychology" books in the past, where all sorts of experiments elucidating human behavior are described. Well, these are the two guys who performed many of these very clever experiments.

As an example, the authors wondered why, in the United States, women seem to be less competitive than men. They performed a masterful experiment, in which they showed that competitiveness is a learned, cultural characteristic. They conducted one phase of their experiments in a region of India, where a matriarchal society raised women to be much more competitive than men.

The two authors conducted a large set of experiments in the public schools of Chicago, in areas where virtually all the children come from desperately poor--and often dysfunctional--families. Gneezy and List explored a wide range of--how can is say it otherwise, they used bribes--to students, to parents, and to mentors. They explored a variety of bribes, some with immediate gratification, others with delayed gratification, some positive, some negative. They were able to establish what types of inducements can help children in school. There is much controversy over whether extrinsic motivation (like a bribe) should be used, and whether intrinsic motivation is better. The authors explain that in such a setting, where 50% of children drop out of school before graduating, they have no intrinsic motivation.

This book is quite entertaining, and goes into just the right level of detail in describing each set of experiments. The book explores a wide range of human behavior, and often attacks our deeply-held assumptions and beliefs. The authors helped establish the field of behavioral economics, which was pretty much ignored before they began their careers. This helps to give the book an air of authority, which made it all the more enjoyable for me.