48. College Fraternities

The Economics of Everyday Things

A fraternity’s budget includes broken windows, liability insurance, chili dog breakfasts, and the occasional $40,000 DJ. Zachary Crockett crashes the party.

• SOURCES:
  • Anthony Anderson, member of the Sigma Alpha Epsilon fraternity.
  • Danielle Logan, owner of Fraternity Management.
  • Charlie O’Neill, member of the Sigma Alpha Epsilon fraternity.
  • Stephen J. Schmidt, professor of economics at Union College.

• RESOURCES:
  • "If Student Deaths Won't Stop Fraternity Hazing, What Will?" by Ben Kesslen (NBC News, 2021).
  • "Social Animal House: The Economic And Academic Consequences Of Fraternity Membership," by Jack Mara, Lewis Davis, and Stephen Schmidt (Contemporary Economic Policy, 2018).
  • "How Fraternities Exacerbate Inequality," by Jillian Berman (MarketWatch, 2017).
  • "18 U.S. Presidents Were in College Fraternities," by Maria Konnikova (The Atlantic, 2014).
  • Inside Greek U.: Fraternities, Sororities, and the Pursuit of Pleasure, Power, and Prestige, by Alan D. DeSantis (2007).

• EXTRAS:
  • "Freakonomics Radio Goes Back to School," series by Freakonomics Radio (2022).