The Importance of Markets in Economics

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There's very little that's anti-free market in the book. What's magical about markets, of course, is that they solve problems through a process of kind of market-tested innovation. I think if you approach business problems with the mentality of someone who's trying to make it look like physics, then one of the dangers is always trying to optimize something.

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.