Freakonomics Radio 353. How to Optimize Your Apology
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Oct 11, 2018 Apologies are examined through the lens of science and real-life stories. The effects of apologies on trust and reputation are explored, along with an analysis of a field experiment conducted by Uber. Tips on how to optimize effective apologies are provided, and the efficacy of public apologies is discussed. Stuart's journey from a controversial video to a sincere apology is highlighted. The chapter also includes various announcements, subscriptions, and sponsors.
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Economist Turns Bad Uber Ride Into Experiment
- John List missed part of his AEA panel after an Uber driver drove him back home by mistake. He called Uber CEO Travis Kalanick and later turned the incident into a large field experiment on apologies.
Apologies Need Cost To Signal Sincerity
- Ben Ho's model predicts apologies work when they impose real costs on the apologizer. Costly signals include status loss, monetary outlays, or reputational exposure that show sincerity.
Test Apologies At Scale With Clear Metrics
- Uber ran an experiment with 1.6 million riders sending different apology types and $5 coupons after bad trips. Track customer spending for 84 days to measure which combinations repair behavior.