The Importance of Invention in Economics

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

The author argues that markets are inventive, not just efficient. In order to create an enjoyable eating experience, food is only part of the story. He says context, expectation and a whole lot of psychological factors are also important. The process of invention does not only apply to goods themselves, but to the marketing and presentation of those goods,.

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.