The Value of Intermediaries in Banking

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The value of intermediaries is completely disparaged by economics, because you see them as an inefficiency. In informational terms, infamigities serve a very important purpose,. There's a difference between ten person people buying from someone once and one person buying ten times over time. And so, the intermediary knows that his long-term interest is served by dealing with the customer.

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.