SuperFreakonomics: Global Cooling, Patriotic Prostitutes, and Why Suicide Bombers Should Buy Life Insurance

Supply and demand are foundational economic concepts describing the relationship between the availability of goods or services (supply) and the desire for them (demand). Prices and behaviors in markets are shaped by the interplay of these forces; when demand exceeds supply, prices rise, and when supply exceeds demand, prices fall. In SuperFreakonomics, these principles are applied to unconventional topics like sex work, where high demand for services and limited supply allow individuals like Ally to command premium earnings. The book also explores how the concept of supply and demand influences broader societal issues, such as the cost of healthcare and environmental resources. By analyzing these dynamics, the authors reveal the various ways in which incentives and market forces shape behaviors across both conventional and taboo industries.

Altruism refers to selfless concern for the well-being of others, often involving personal sacrifice without expectation of reward. In SuperFreakonomics, the authors examine altruism skeptically, exploring its limitations as a driver of large-scale behavioral change. They argue that expecting widespread altruistic actions (e.g., reducing consumption to combat climate change) is unrealistic because human behavior is typically guided by incentives and tangible benefits. The book emphasizes implementing practical, incentive-based solutions rather than relying upon altruism to address global challenges effectively. They are also skeptical about altruism’s opposite—selfishness—and point out that perceived human selfishness is often driven by multiple complicating factors.