When to Rob a Bank Summary

Why do we fear strangers more than friends when statistics suggest the opposite? Economics and human behavior intersect in fascinating—and surprising—ways.

1. Names Shape Perceptions and Spread Unpredictably

Names carry more influence than we often realize. They can shape perceptions and, surprisingly, even correlate with unusual trends. One quirky fact: people with the middle name "Wayne" have appeared disproportionately frequently in crime reports collected by an enthusiastic amateur. Such odd trends highlight the social associations tied to names.

Names also spread culturally in unexpected ways. For instance, the name "Nevaeh" (heaven spelled backward) skyrocketed in popularity after a Christian rockstar mentioned it on MTV. By 2005, it surpassed traditional names like Sara in popularity.

And sometimes, names just align with uncanny appropriateness. A man arrested for public indecency happened to have the last name "Limberhand," while a dentist fittingly went by "Dr. Les Plack."

Examples

• Overrepresentation of criminals with the middle name "Wayne"
• MTV’s influence on the rise of the name "Nevaeh"
• A dentist named Dr. Les Plack and its amusing connection

2. Prices Are Illogical and Misleading

When it comes to pricing, humans are easily swayed by small differences. For example, an item priced at $0.99 feels markedly cheaper than one priced at $1, even though the difference is minimal. Such pricing techniques exploit our psychological biases.

The pharmaceutical market exposes the perplexing inconsistency of pricing. Generic drugs like Prozac cost $117 at some chain pharmacies but only $12 at Costco. Most customers assume prices are standard, but a little research could save them a lot of money.

Even retailers themselves display confusion. At Harold’s Chicken Shack, one additional chicken wing in a meal deal cost more than the first two combined. These pricing anomalies suggest that businesses, customers, and even governments (e.g., producing one-cent coins that cost more than their value) often misunderstand the economics of value.

Examples

• Psychological response to $0.99 versus $1 pricing
• Dramatic cost differences in generic drugs between stores
• Overpriced single chicken wings compared to combo meals

3. Misjudging Risk: The Familiar vs. the Unknown

We often misjudge risks, fearing strangers while overlooking the dangers posed by those we know. Statistics reveal that murder victims are more likely to know their killers than not, and the majority of rape and assault victims recognize their attackers.

The media amplifies misplaced fears. For instance, terrorism fears led to a false alarm involving a passenger on AirTran, while stories like Bruce Pardo—who killed nine family members dressed as Santa—receive less attention. Familiar connections, such as former partners, often pose greater threats.

Even our risk-taking habits surprise us. Data shows that walking drunk is more dangerous than driving drunk over the same distance. Similarly, horseback riding results in more injuries per hour than motorcycle riding.

Examples

• 64% of rape victims know their attackers
• Media-fueled passenger fears ignoring statistical likelihood
• Horseback riding injuries exceed those of motorcycling

4. Lying Often Defies Logic

Lying is common, yet it sometimes defies logic. For example, poor applicants for the Mexican welfare program Oportunidades lied to appear eligible—claiming to lack assets like cars. Ironically, others exaggerated their poverty, claiming possessions they didn’t have (e.g., toilets, tap water) to avoid embarrassment.

Lying occasionally serves a calculated purpose. Publishers push inaccurate memoirs instead of novels because "true" stories sell better and generate more publicity. These deliberate deceptions highlight the role financial rewards play in motivating dishonesty, even at the cost of reputations.

Examples

• Welfare applicants lying both to appear poor and wealthier
• Mislabeling works like Margaret Seltzer’s memoir “Love and Consequences” to boost sales
• Risking government funds in pursuit of personal gain

5. Environmental Efforts Aren’t Always Effective

What we think helps the environment sometimes harms it. For instance, calculating emissions reveals that replenishing calories from walking (e.g., drinking a glass of milk) can be as environmentally damaging as driving the same distance.

Growing your food seems eco-friendly but contributes minimally to combating emissions. Transporting food accounts for 11% of emissions, but meat consumption is a much larger issue. Reducing meat intake by even one day per week would significantly lower greenhouse gas emissions compared to personal gardening efforts.

Examples

• Walking a mile and drinking milk equals the carbon footprint of driving
• Food production accounts for 83% of emissions, while transport accounts for 11%
• Meat’s carbon footprint greatly exceeds that of plant-based alternatives

6. Crime and Economics Intersect in Odd Ways

Crime has its quirks. Statistically, Thursday is the favorite day for bank robbers in New Jersey. Interestingly, a psychological principle called priming reveals another layer: labeling people as criminals can encourage them to behave dishonestly.

An experiment with prisoners asked some participants about their convictions before flipping coins. Those reminded of their criminal history lied more often about the number of "heads" they flipped. Similar methods can be used positively, for rehabilitation, or amusingly in immigration forms that directly ask if someone has committed a crime they haven't been caught for.

Examples

• Thursday as an unusual crime peak for bank robberies
• Coin-flip experiments showing higher dishonesty among "primed" criminals
• Self-disclosure honesty questions on US immigration forms

7. Sex and Public Welfare Dynamics

Sex has social costs and benefits beyond the personal sphere. Professor Steven Landsburg proposed encouraging healthy, careful individuals to have more sex to reduce STD transmission from riskier populations, likening unsafe sex to pollution in its societal costs.

The authors also humorously suggest a "sex tax" where safer sexual practices are incentivized, and risky behavior is taxed. Although such proposals seem far-fetched, it highlights interesting intersections between personal behavior and public economics.

Examples

• Landsburg’s proposal for increasing careful individuals’ casual sex
• Potential taxation policies on risky sexual behaviors
• Historical attempts at sex taxation such as Bernard Gladstone’s 1971 proposal

8. Motivation is Tied to Incentives

Monetary rewards can encourage behavior, even in schoolchildren. In an experiment, offering students $20 before a test improved their performance significantly. Since they would lose the money if they underperformed, the close connection between action and reward made for a strong motivator.

This method of motivation contrasts with non-financial encouragement (e.g., verbal praise), demonstrating the effectiveness of pairing effort with immediate and tangible rewards.

Examples

• Cash incentives improving test scores in educational experiments
• Students psychologically motivated by avoiding loss rather than solely gaining reward
• Impact of tangible rewards on action, mirrored in workplaces

9. Economics Shapes Consumption Behavior

Economic principles affect trends like the tripling of US shrimp consumption from 1980 to 2005. While psychologists attribute this to health or advertising trends, economists attribute it to supply-side factors like improved production technology that reduced costs.

This highlights a significant gap between how consumers view their behaviors (focused on preferences) versus producers (focused on production efficiencies).

Examples

• US shrimp consumption amplifying due to better nets and lowered prices
• Unexpected focus on demand-side influences by non-economists
• Supply economics as a hidden driver of everyday choices

Takeaways

1. Always question pricing and shop around for better deals, especially for essentials like medicine.
2. Rethink environmental efforts—focus on impactful actions like reducing meat consumption over small but less effective changes.
3. Be cautious of the people closest to you; personal connections often account for more risks than strangers.