Summary Of Freakonomics

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The second chapter in Freakonomics asks the reader the following question: “How is the Ku Klux Klan like a group of real estate agents?” It is obvious the authors are not implying that the Ku Klux Klan engages in real estate transactions; nor does it imply that the real estate industry is filled with established terrorist hate groups. According to the authors, these two groups share a common trait in their dependence on “secret” information. Not only do the members of both parties need to possess the information necessary to succeed, but secrecy of the particular information is imperative, as well. The information they posses not only drive their success, but can be a liability as well. The Ku Klux Klan originally began as a social…show more content…
They labeled themselves the “Invisible Empire,” because of their ability to work away from the public eye, and wreak havoc against their enemies in secrecy. The group had their own language, handshakes, and greetings, which made it easy for members to connect with one another without alarming “outsiders.” Their success eventually halted as the secret information they used to their advantage was turned against them. An individual named Stetson Kennedy was able to acquire access to their trade secrets and publish them to a national audience. The leaks soon lead to the demise of the Ku Klux Klan. Opponents gained strength, while future prospects raised doubt about enrollment. The Ku Klux Klan was no longer the “Invisible Empire.” The information they depended on to fuel their success quickly ran out. The Ku Klux Klan’s dependence on secret information is also a strength/liability shared by agents in the Real Estate industry. Before an individual can take part in the real estate market, they must first seek the help of one of these agents. The agents are “experts” in the field, because their knowledge of competitive market prices, past transactions, and other vital information is applied in attaining premium prices. The agents are able to access and analyze a variety of factors surrounding their client’s wishes to purchase and sell homes, and are given a percentage of the sale
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