The Problem with Trade-offs in Economics

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Nicholas Gruen, an economist, believes that economics' concept of trade-offs is limiting creativity. He argues that contradictory variables can actually be complementary, and by seeking a balance between them, we miss out on magic. Gruen uses the example of car manufacturing, where Toyota and Mercedes-Bortz took different approaches to quality control. Gruen believes that economics' focus on trade-offs has stifled creativity and prevents people from embracing magic.

Rory Sutherland is a British advertising executive, author, and marketing visionary. He’s the UK Vice Chairman of Ogilvy, one of the world's largest and most renowned ad firms. Mad Men is largely inspired by the company and one of the firm’s founders, David Ogilvy.

Rory started Ogilvy’s behavioral science practice, pioneering the application of behavioral economics and evolutionary psychology to marketing and advertising.

Some of his counterintuitive theories on marketing and human behavior are compiled in his book Alchemy: The Power of Ideas That Don't Make Sense, where, primarily, he argues that great marketing ideas are often built around a core that is profoundly irrational.

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