It would be foolish to apply economics as a Newtonian science, like a Newtonian physics. And it's an art that's complicated by the context, culture, ego, will, all kinds of phenomena,. agency, responsibility, pride, reputation. But it's still a good idea to keep incentives in mind. The thing is that humans respond to emotion. Emotion is derived from meaning. And meaning is derived from context as much as it's derived from any kind of objective measure of circumstance. We're so context sensitive in terms of our behavior that the attempt to create what you might call a single line mapping between the environment andbehavior seems to me to be doomed. I wouldn't go
Author and Advertising Executive Rory Sutherland of Ogilvy talks about his book Alchemy with EconTalk host Russ Roberts. Sutherland makes the case for the magic (yes, magic!) of advertising and branding in helping markets work well. This is a wide-ranging conversation on consumer choice, public policy, travel, real estate, and corporate decision-making using insights from behavioral economics and decades of experience in the world of advertising.