Canadian Researcher: Prof. Levitt's New Book, Superfreakenomics, Ignores Abortion Risks

RFFM.org ^ | Oct. 29, 2009 | Brent Rooney

[Daniel T. Zanoza]

Brent Rooney: Superfreakenomics Co-Author Should Leave Medical Matters Alone

Steven D. Levitt's LAUGH-IN / Freakonomics Fried

by Brent Rooney (MSc) *

On Oct. 2009, Univ. of Chicago Prof. Steven D. Levitt debuted Superfreakonomics as a sequel to his best-selling book Freakonomics 2005). Perhaps Levitt is correct about Global Cooling, in his 2009 book, but nothing Levitt writes about medical matters can be believed.

If a young Milton Friedman (PhD, Nobel Prize winner) had opined that “strong increased consumer demand for IPODs or Ivory Soap leads to DECREASED prices”, the loud guffaws would have shattered ears and the business press would have lectured the good professor from the same university as economics professor Steven D. Levitt (Univ. of Chicago).

In 2001 Steven D. Levitt & co-author John Donohue were not pulling an April fool's joke when the pair declared ...

[USFRIENDINVICTORIA]

“If a young Milton Friedman (PhD, Nobel Prize winner) had opined that “strong increased consumer demand for IPODs or Ivory Soap leads to DECREASED prices”, the loud guffaws would have shattered ears and the business press would have lectured the good professor from the same university as economics professor Steven D. Levitt (Univ. of Chicago).”

Wrong!

IMHO, the article was weakened by including the above statement.

Without having read Levitt's book; I know of at least one possible reason that the price of IPODs would decrease, due to increased demand. Economies of scale. The fixed costs, of developing and marketing the product, would be spread over more units — thus allowing lower prices. Competition would provide the incentive for the manufacturer to pass on the cost savings.

Friedman would not have laughed at that — nor would his fellow Chicago School economists. They might have wondered (as I do) what was so startling about the lower prices; that merited the observation being included in a book titled: “Superfreakonomics”.