The Paradox of Uncertainty

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There's an idea called the control heuristic, which suggests that a very deep part of human motivation is attempting to maintain a sense of certainty. We really, really hate being in a position of uncertainty and this may explain weird economic findings. Variance reduction, of course, is perfectly rational.

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.