The Economic Naturalist's Answer to the Problem With Women's Dry Cleaning

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Economics is wrong to pattern itself after Newtonian physics, he says. A good economist understands that monetary incentives aren't the only thing that matters,. They're pride, ego, reputation and opportunity cost of various choices. The Economic Naturalist by Robert Frank goes back a long way in this episode's archives.

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.