EconTalk Rory Sutherland on Alchemy
10 snips
Nov 11, 2019 
Rory Sutherland, an advertising executive at Ogilvy and author of 'Alchemy,' discusses the surprising influence of behavioral economics on consumer behavior. He critiques traditional economic models, advocating for creativity in market dynamics. Sutherland explores how psychological factors shape consumer choices, like the impact of context in dining experiences. He also discusses the evolution of TV viewing and the complexities of trust in today's economy, emphasizing the need for improved consumer experiences over mere efficiency.
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The Role of Marketing
- Marketing and advertising are necessary because economic models often assume perfect information and trust.
- These assumptions create a fantasy world where marketing wouldn't exist, but human perception is not objective.
Uber's Psychological Innovation
- Rory Sutherland uses Uber as an example of a psychological innovation.
- Watching a car approach makes waiting less frustrating than being in a state of ignorance.
Hiring Dynamics
- Asking 10 people to hire one person yields different results than one person hiring 10.
- The former emphasizes conformity, while the latter seeks complementarity.
