Freakonomics
Econ 1100.02 - 100 WF 9:35am-10:55am
Arps Hall 0384
Nicholas A. Snow
Office: 317 Arps Hall
Office Hours: Tuesdays 2pm-4pm or by appointment
Email: snow.172@osu.edu
Course Introduction
The aim of this course is to introduce students to rational choice and the economic way of
thinking. The course will introduce the principles of microeconomic theory by examining
the hidden economics of human action. Students will be introduced to these ideas by
examining the economics of everyday life, for example the economics of love, taxes, etc.,
as well as examining rational explanations for seemingly irrational behavior, for example
wife sales, trial by battle, human sacrifice etc. The aim of the course will be to introduce
students to the amazing explanatory power of economics and to hopefully show how it is
anything but a dismal science.
Grading
Your final grade will be based upon performance on a Research Paper (30%), Mid-Term
(25%), Quizzes (35%) and Class Participation (10%).
Grading Scale: A 100-93%; A- 92-90%; B+ 89-87%; B 86-83%; B- 82-80%; C+ 7977%; C 76-73%; C- 72-70%; D+ 69-67%; D 66-63%; D- 62-60%; and F <60%.
Required Books (numerous articles will also be assigned throughout the semester, see
tentative schedule below)
Paul Heyne, Peter Boettke, and David Prychitko (2010). The Economic Way of Thinking,
12th edition. Pearson. (EWOT)
Peter Leeson (2009). The Invisible Hook: the Hidden Economics of Pirates. Princeton
University Press. (IH).
Steven Landsburg (1993). The Armchair Economist: Economics & Everyday Life. Free
Press. (AE).
Recommended Books:
Deirdre McCloskey (1999). Economical Writing. Waveland.
Steven Levitt and Stephen Dubner (2009). Freakonomics: A Rogue Economist Explores
the Hidden Side of Everything. William Morrow.
Research Paper
Students will be required to write a research paper on either the rational choice behind the
mundane or the rational choice of the seemingly irrational behavior. The student will be
expected to attempt to provide a rational choice explanation for this behavior by using the
tools learned in this course. More on this will be discussed later in class.
The paper must be a minimum of 6 pages and a maximum of 10 pages. It must be
doubled spaced with 12-pt Times Roman Font and 1-inch margins. It must contain a
separate cover page and works cited (which do not count towards the page requirement).
A minimum of 6 sources must also be used.
The paper will be due April 25 by 5pm. A hard copy of the paper must be turned into
either my office (Arps Hall 317) or my mailbox (Arps Hall 410). Late Papers will be
marked down.
Mid-Term
The Midterm will test the student on the tools learned in the course up to that point. The
midterm is meant to help me assess how the students are progressing in understanding the
material up to this point. It will consist of multiple choice and short answer questions.
The midterm is mainly on the readings, particularly from Heyne, Boettke, and
Prychitko’s The Economic Way of Thinking, but the question may also come from the
other readings and class lecturers/discussions. The midterm will be on Friday March 1st;
it will be closed book, notes, and any other materials. The Midterm may be made up only
with a valid documented excuse but the make up midterm will be harder than the original.
Quizzes
Once a week a short quiz on the readings and class discussion will given for that specific
week. You must be present and on time to take the quiz. There will be no make up
quizzes (and with no exceptions), but at the end of the semester the two lowest quiz
grades will be dropped. The quizzes are designed to encourage students to read the
assigned materials and to pay attention and participate during class.
Class Participation
Students should contribute to the class discussions. Economics can be seen as a different
way of thinking and thus one of the best ways to learn how to learn to think like an
economist is to join in on the class discussion. Therefore, I expect all students to ask
questions, bring up comments, and express their views throughout the semester. The
more a students contributes to the class the discussion the better the participation grade.
Schedule and Readings
Note this is a tentative schedule and the minimum reading requirements for the semester,
it is subject to change. Dates in bold signifies that there will be no class that day.
Week 1 – January 9 (W) and January 11 (F)
Topic: Rational Choice Theory and Economic Way of Thinking
Sub-Topics: Efficiency, Exchange, and Comparative Advantage
Readings: EWOT – Chapters 1 and 2, and AE – Chapters 1 and 4
Week 2 – January 16 (W) and January 18 (F)
Topic: Demand and the Economic Way of Thinking
Sub-Topics: Opportunity Cost, Demand, and Elasticity
Readings: EWOT – Chapter 3, and AE - Chapter 2
Week 3 – January 23 (W) and January 25 (F)
Topic: Supply and the Economic Way of Thinking
Sub-Topics: Supply, Costs, and Production
Readings: EWOT – Chapter 4, AE – Chapter 16
Week 4 – January 30 (W) and February 1 (F)
Topic: Markets as A Coordination Process
Sub-Topics: Competition and Cooperation, and Trading with Bandits?
Readings: EWOT Chapter 5
Week 5 – February 6 (W) and February 8 (F)
Topic: Intervention into the Market and Unintended Consequences
Sub-Topics: Price Controls, Taxes, and Other Market Interventions
Readings: EWOT – Chapter 6, and AE – Chapter 7
Week 6 – February 13 (W) and February 15 (F)
Topic: Love and Economics
Sub-Topic: Dating or the Market for Love, Wife Sales (Say What? Property Rights are
important, remember?)
Readings: AE – Chapter 7, Leeson, Boettke, and Lemke, “Wife Sales”
http://www.peterleeson.com/Wife_Sales.pdf
Week 7 – February 20 (W) and February 22 (F)
Topic: The Importance of Profit and Loss
Sub-Topics: The Role of Prices
Readings: EWOT – Chapter 7, AE – Chapter 8
Week 8 – February 27 (W) and March 1 (F)
Topic: Midterm Review (W) and Midterm (F)
Readings: NONE!
Week 9 – March 6 (W) and March 8 (F)
Topic: Democracy and Economics
Sub-Topic: Economics of Politics, Pirates
Readings: IH – Chapters 2 and 3, AE – Chapter 6
Week 10 – March 13 (W) and March 15 (F)
Topic: No Classes, Spring Break
Readings: NONE!
Week 11 – March 20 (W) and March 22 (F)
Topic: Economics in the Courtroom
Sub-Topics: Coase Theorem, Trial by Ordeals, Trial By Battle, and Sassywood
Readings: AE – Chapter 9, Leeson and Coyne, “Sassywood”
http://www.peterleeson.com/Sassywood.pdf
Week 12 – March 27 (W) and March 29 (F)
Topic: Legal Systems Different From Our Own
Sub-Topic: Medieval Iceland, Gypsy Law, and the Law Merchant
Readings: Leeson, “Gypsy Law” http://www.peterleeson.com/Gypsies.pdf, Friedman,
“Private Creation and Enforcement of Law”
http://www.daviddfriedman.com/Academic/Iceland/Iceland.html, Leeson, “One More
Time With Feeling” http://www.peterleeson.com/One_More_Time_with_Feeling.pdf
Week 13 – April 3 (W) and April 5 (F)
Topic: Signaling and Reputation
Sub-Topics: Pirates Again: Skull and Cross Bones, Walking the Plank
Readings: IH – Chapters 4 and 5
Week 14 – April 10 (W) and April 12 (F)
Topic: That’s Not What I Would Have Thought!
Sub-Topics: Cursing Monks, Well Paid and Not Conscripted Pirates, and Well Behaved
Hooligans
Readings: IH – Chapters 6 and 7, and Leeson, Smith, and Snow, “Hooligans”
http://nicholasasnow.com/Site/Research_files/Hooligans.pdf
Week 15 – April 17 (W) and April 19 (F)
Topic: Rational Choice and Trickery?
Sub-Topics: Human Sacrifice and Animal Trials (oh my!)
Readings: NONE!
Final Papers Due: April 25th by 5pm (see above section on final research paper for more
details)
Student Services Information:
Code of Student Conduct:
www.studentaffairs.osu.edu/resource_csc.asp
Code of Student Conduct:
ACADEMIC INTEGRITY (ACADEMIC MISCONDUCT)
Academic integrity is essential to maintaining an environment that fosters excellence in
teaching, research, and other educational and scholarly activities. Thus, The Ohio State
University and the Committee on Academic Misconduct (COAM) expect that all students
have read and understand the University’s Code of Student Conduct, and that all students
will complete all academic and scholarly assignments with fairness and
honesty. Students must recognize that failure to follow the rules and guidelines
established in the University’s Code of Student Conduct and this syllabus may constitute
“Academic Misconduct.”
The Ohio State University’s Code of Student Conduct (Section 3335-23-04) defines
academic misconduct as: “Any activity that tends to compromise the academic integrity
of the University, or subvert the educational process.” Examples of academic misconduct
include (but are not limited to) plagiarism, collusion (unauthorized collaboration),
copying the work of another student, and possession of unauthorized materials during an
examination. Ignorance of the University’s Code of Student Conduct is never considered
an ‘excuse’ for academic misconduct, so I recommend that you review the Code of
Student Conduct and, specifically, the sections dealing with academic misconduct.
If I suspect that a student has committed academic misconduct in this course, I am
obligated by University Rules to report my suspicions to the Committee on Academic
Misconduct. If COAM determines that you have violated the University’s Code of
Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct
could include a failing grade in this course and suspension or dismissal from the
University.
If you have any questions about the above policy or what constitutes academic
misconduct in this course, please contact me.
Other sources of information on academic misconduct (integrity) to which you can refer
include:
The Committee on Academic Misconduct:
www.oaa.osu.edu/coam/home.html
Ten Suggestions for Preserving Academic Integrity:
www.oaa.osu.edu/coam/ten-suggestions.html
Eight Cardinal Rules of Academic Integrity:
www.northwestern.edu/uacc/8cards.html
Students with Disabilities Contact Information:
“Any student who feels she/ he may need accommodation
based on the impact of a disability should contact the
instructor privately to discuss your specific needs. Please
contact the Office for Disability Services at 614/ 292-3307 in
150
Pomerene
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to
coordinate
reasonable
accommodations for students with documented disabilities.”