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The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life, by Uri Gneezy, John List
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Can economics be passionate?… Can it center on people and what really matters to them day-in and day-out.… And help us understand their hidden motives for why they do what they do in everyday life?
Uri Gneezy and John List are revolutionaries. Their ideas and methods for revealing what really works in addressing big social, business, and economic problems gives us new understanding of the motives underlying human behavior. We can then structure incentives that can get people to move mountains, change their behavior—or at least get a better deal.
But finding the right incentive can be like looking for a needle in a haystack. Gneezy and List’s pioneering approach is to embed themselves in the factories, schools, communities, and offices where people work, live, and play. Then, through large-scale field experiments conducted “in the wild,” Gneezy and List observe people in their natural environments without them being aware that they are observed.
Their randomized experiments have revealed ways to close the gap between rich and poor students; to stop the violence plaguing inner-city schools; to decipher whether women are really less competitive than men; to correctly price products and services; and to discover the real reasons why people discriminate.
To get the answers, Gneezy and List boarded planes, helicopters, trains, and automobiles to embark on journeys from the foothills of Kilimanjaro to California wineries; from sultry northern India to the chilly streets of Chicago; from the playgrounds of schools in Israel to the boardrooms of some of the world’s largest corporations. In The Why Axis, they take us along for the ride, and through engaging and colorful stories, present lessons with big payoffs.
Their revelatory, startling, and urgent discoveries about how incentives really work are both revolutionary and immensely practical. This research will change both the way we think about and take action on big and little problems. Instead of relying on assumptions, we can find out, through evidence, what really works. Anyone working in business, politics, education, or philanthropy can use the approach Gneezy and List describe in The Why Axis to reach a deeper, nuanced understanding of human behavior, and a better understanding of what motivates people and why.
- Sales Rank: #416484 in Books
- Brand: Brand: PublicAffairs
- Published on: 2013-10-08
- Released on: 2013-10-08
- Original language: English
- Number of items: 1
- Dimensions: 9.75" h x 6.75" w x 1.25" l, .0 pounds
- Binding: Hardcover
- 288 pages
Features
- Used Book in Good Condition
Review
“Gneezy and List... specialize in ingenious 'field experiments' that elucidate the workings of social psychology and decision making...Writing in the Freakonomics vein of breezy pop-econ... The authors’ lucid, engaging exposition of thought-provoking research spotlights some of our more perverse promptings—and their underlying logic."
—Publishers Weekly, STARRED Review
“Fun, Freakonomics-style stories about why people do the things they do….Gneezy and List offer illuminating discussions on many topics, from the differences between animus-based and economic discrimination to how women can grow up to be more competitive and close the gender gap in the labor market.”
—Kirkus Reviews
“[T]rue trailblazers in one of the greatest innovations in economics of the last fifty years.”
—Steven D. Levitt, coauthor of Freakonomics
“Uri Gneezy is a pioneer whose work tears down the wall between the lab and the field.”
—Alvin E. Roth, winner of the Nobel Prize in Economic Sciences
“It is hard to imagine any story of innovation in our thinking about economics that does not involve Uri and John. Both in their independent work and in their joint projects, they have expanded and looked at the sensitive underbelly of economics. I can’t think of a book that I’m looking forward to more than this one.”—Prof. Dan Ariely, Professor of Behavioral Economics, Duke University; author, Predictably Irrational and The Upside of Irrationality
“John List and Uri Gneezy are among the foremost behavioral economists in the world. Their ideas have been groundbreaking, and their research has been widely read and hugely influential. I'll be eager to read any book they produce.” —Prof. Daniel Gilbert, Professor of Psychology, Harvard University and Author of Stumbling on Happiness
“John List’s work in field experiments is revolutionary.”—Prof. Gary Becker, University of Chicago, Nobel Laureate in Economics
“John List and Uri Gneezy have done the pioneering economic work on whether gender differences are innate or the result of social pressures. They are two of America's leading young economists and their work is followed with great interest.”—Prof. Tyler Cowen, George Mason University; author, The Economic Scene and blogger, Marginal Revolution.com
“John List and Uri Gneezy are leaders in the area of experimental and behavioral economics and rising stars of the profession. Their work bridges the gap between the lab and the field and enables us to learn how economic agents make real decisions in controlled environments and as the economic stakes change. A book bringing their distinctive perspectives and styles has the potential of being a real home run.”—Prof. Daron Acemoglu, Professor of Economics, M.I.T, coauthor of Why Nations Fail
“Gneezy and List are two of the most brilliant and interesting economists in the world. Their work is simultaneously scientifically path breaking and accessible to the general public. They've studied prosaic markets like baseball card conventions, daycare centers, and auto-repair shops, but their ideas are so deep that Gneezy and List reveal that these mundane markets turn out to hold the secrets of human motivation and human behavior. Their work has revolutionized all of social science. I can't wait to read a book that they write.”—Prof. David Laibson, Professor of Economics, Harvard University
“Since it will probably change the way we both think about and take action on big and little problems, [The Why Axis] should be required reading for those in business, philanthropy, politics, healthcare, and education—as well as for anyone interested in understanding the complex reasons why we do what we do. It's a worthy companion to Freakonomics and SuperFreakonomics as well as books and articles by Gary Becker, who was awarded the 1992 Nobel Prize in economic sciences”—Huntington News
“John List and Uri Gneezy have done pioneering work in economics on big, complex problems such as discrimination, whether gender differences are innate or the result of social pressures, and how to close the gap between inner-city students and those who live in wealthy areas. Anyone interested in finding solutions to these and other major problems will find their book a rich resource.”
—Tyler Cowen, professor of economics, George Mason University, and blogger, MarginalRevolution.com
About the Author
Uri Gneezy was born and raised in Israel, where he learned applied game theory firsthand in the streets of Tel Aviv. Dr. Gneezy is the Epstein/Atkinson Endowed Chair in Behavioral Economics and professor of economics and strategy at the Rady School of Management at the University of California, San Diego.
John A. List grew up in a working-class family in Wisconsin—where his father drove trucks for a living—and learned economics in hobby markets. Dr. List is the Homer J. Livingston Professor of Economics at the University of Chicago. He has been a research associate at the National Bureau of Economics (NBER) for more than a decade and served as senior economist on the President’s Council of Economic Advisors for environmental and resource economics.
Excerpt. � Reprinted by permission. All rights reserved.
The sign on the road in the Khasi hills of northeast India had a puzzling message: “Equitable distribution of self-acquired property rights.” We asked Minott, our driver, what it meant.
“I do not work in the rice fields, like most men of my tribe,” he told us proudly. “I work as a translator. And a driver. And I operate a gas station in my sister’s house. And I trade goods at the market. You see! I work very hard!”
We nodded in agreement. He certainly seemed like a natural-born entrepreneur….But Minott’s life was constricted. Many of the things he wanted to do required his sister’s permission, because in the matrilineal Khasi society, women hold the economic power. The sign on the road, Minott explained, was part of a nascent men’s movement, as the men in Khasi society began to articulate their resentment over being treated as “breeding bulls and babysitters.” Here was a parallel universe—one we believed might help us solve one of the most vexing economic questions in Western society, inequality between men and women.
Most helpful customer reviews
21 of 24 people found the following review helpful.
Exciting research and powerful insights
By Alex
I've been looking forward to this book for a while. Both Uri Gneezy and John List are well known in economics as asking bold, interesting questions and coming up with extremely creative ways of answering them. They were the originators of field experiments in economics, popularizing the practice of testing ideas with real people (from sports card traders to African tribesmen) in the real world.
I'm happy to say that the book exceeded my expectations in almost every way. Uri and John discuss their most interesting and applicable projects, filling each chapter with rich anecdotes and implications of the original research to everyday life. The book is a pleasure to read without sacrificing the rigor of the scientific studies. In fact, the interested reader will find the details surrounding each project's design particularly fascinating: in one chapter the authors go to India and Tanzania to study gender differences in competition among matrilineal and patriarchal societies, in another chapter, they conduct a large scale field experiment in Chicago public schools.
It's all interesting and comes with plenty of insight. If you would like advice on how to design an effective incentive scheme, are interested in a new take on discrimination, or are simply fascinated by human behavior, I highly recommend you buy this book!
12 of 14 people found the following review helpful.
A Brief Summary and Review
By A. D. Thibeault
*A full summary of this book is available here: An Executive Summary of Uri Gneezy and John A. List's 'The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life'
The main argument: Until quite recently, the field of economics was dominated mainly by theory-making. Specifically, economists applied their intellects to the human world, and developed abstract models to explain (and predict) the unfolding of economic events. At the heart of all this theory-making stood homo economicus--a narrowly self-interested individual who responded to incentives and disincentives in a perfectly rational way.
In the past half century, though, various economists have added new wrinkles to the field's repertoire. To begin with, pioneering economists such as Amos Tversky and Daniel Kahneman introduced controlled lab experiments (among other things) into the fold. And these experiments succeeded in adding nuance to our understanding of economic-man (he's not quite as one dimensional and rational as he was once taken to be), as well as texture and complexity to our understanding of economic phenomenon.
More recently, economists such as Uri Gneezy and John A. List have stepped in and showed that controlled field experiments also have a place in economics. For Gneezy and List, the world is their laboratory: the two go about slyly manipulating the natural environment in a controlled way (often fiddling with incentives and disincentives of all types) to see how we humans respond to the tweaks. Gneezy and List have been practicing this approach for upwards of 20 years now, and in this time they have helped shed light on everything from how to decrease crime rates; to how to improve school success; to how to encourage more charitable giving; to how to promote healthy living and decrease obesity; to how to set prices on products (so as to maximize profits); to how to understand (and limit) discrimination (to name but a few lines of research of theirs). And in their new book The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life the two catch us up on their experiments and their results (while also touching on the experiments of other like-minded practitioners).
Take education, to begin with. Gneezy and List have gained a fair bit of attention recently for showing how monetary incentives can be used to help improve grades and graduation rates (particularly with at-risk students)--and even curb school violence; and here we are apprized of the ins and outs of the experiments that were used in this research. What is less well-known is that the authors have also recently become involved in a massive longitudinal study that is designed to test the effectiveness of different approaches to pre-kindergarten education. Though still in its infancy, the study has already yielded some very interesting results; and given that the researchers intend to follow their experimental subjects throughout their lives, the study should help shed a great deal of light on just what approach to early childhood education is most effective.
When it comes to charitable giving, Gneezy and List's experiments have worked wonders in showing just how to encourage as much charity as possible--and have challenged many of the industry's long-held beliefs in the process. The authors cover everything from how much seed-money is needed for a project to maximize donations; to how to approach follow-up requests made to established donors; to how to leverage raffles, lotteries and tontines for best success.
On the topic of business, Gneezy and List remind us how a failure to use an experimental approach can lead to business disaster (as illustrated by Netflix' 2011 decision to modify its business model without experimental research--a decision that drove hordes of customers away, sent the company's stock plummeting, and nearly sank the business outright). The lesson: business tweaks (including changes in pricing) should be tested in a controlled way in a small market (say a given city) before being adopted across the board (an approach that has been utilized to great effect by such companies as Intuit and Humana).
When it comes to discrimination, Gneezy and List have been able to use their experiments to reveal that much of the discrimination that happens nowadays is motivated less by hatred (or animus) as it is by plain old self-interest. Though perhaps not as threatening as outright hatred, discrimination practiced out of self-interest (known as economic discrimination) is problematic in its own right, and Gneezy and List also explore what strategies are best to curb it (this work is more important now than ever, as the internet [combined with data-driven analysis] has made economic discrimination very easy to practice--and hide).
The book is a very fun and interesting read, and Gneezy and List clearly have a knack for telling about their research in a highly entertaining way. The only issue I had with the book is that the authors occasionally exaggerate and over-state just what we can conclude from their experiments. Still, there is much of interest to be learned here, and the book is well-worth the read (just make sure you take it with a grain of salt). A full summary of the book is available here: An Executive Summary of Uri Gneezy and John A. List's 'The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life'
1 of 1 people found the following review helpful.
World changing. But of course you have to read it first.
By Tom Ahern
I write fundraising appeals for a living. I explain my profession to my family this way: "You know that stuff you always throw in the trash, I write that." And what I am ALWAYS looking for is a psychological edge that will help me raise more money for the VERY worthy causes that hire me. This incredible book gave me a half-dozen POWERFUL insights I can now to put to work in fundraising. Thank you, authors. This book is world-changing … or could be, if people, especially policy people and nonprofits, take the time to read it.
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