Perspective is everything - Rory Sutherland
what<00:00:16.520> you<00:00:16.720> have<00:00:17.000> here<00:00:17.720> uh<00:00:18.039> is<00:00:19.000> an<00:00:19.160> electronic
what you have here uh is an electronic
what you have here uh is an electronic
cigarette<00:00:21.119> um<00:00:22.119> it's<00:00:22.320> something<00:00:22.600> that<00:00:22.760> since
cigarette um it's something that since
cigarette um it's something that since
it<00:00:23.080> was<00:00:23.240> invented<00:00:23.760> a<00:00:23.920> year<00:00:24.080> or<00:00:24.199> two<00:00:24.359> ago<00:00:24.560> has
it was invented a year or two ago has
it was invented a year or two ago has
given<00:00:24.880> me<00:00:25.080> untold
given me untold
given me untold
happiness<00:00:28.160> a<00:00:28.359> little<00:00:28.640> bit<00:00:28.760> of<00:00:28.920> it<00:00:29.080> I<00:00:29.199> think<00:00:29.359> is
happiness a little bit of it I think is
happiness a little bit of it I think is
the<00:00:29.599> nicoe<00:00:30.320> but<00:00:30.439> there's<00:00:30.640> something<00:00:30.920> much
the nicoe but there's something much
the nicoe but there's something much
bigger<00:00:31.400> than<00:00:31.719> that<00:00:32.719> which<00:00:32.840> is<00:00:33.040> ever<00:00:33.239> since<00:00:33.960> in
bigger than that which is ever since in
bigger than that which is ever since in
the<00:00:34.200> UK<00:00:34.520> they<00:00:34.680> banned<00:00:35.040> smoking<00:00:35.440> in<00:00:35.640> public
the UK they banned smoking in public
the UK they banned smoking in public
places<00:00:38.360> I've<00:00:38.559> never<00:00:38.840> enjoyed<00:00:39.200> a<00:00:39.320> drinks<00:00:39.760> party
places I've never enjoyed a drinks party
places I've never enjoyed a drinks party
ever
ever
ever
again<00:00:43.079> and<00:00:43.239> the<00:00:43.399> reason<00:00:43.840> I<00:00:44.000> only<00:00:44.200> worked<00:00:44.559> out
again and the reason I only worked out
again and the reason I only worked out
just<00:00:44.960> the<00:00:45.079> other<00:00:45.360> day<00:00:46.160> which<00:00:46.280> is<00:00:46.399> when<00:00:46.520> you<00:00:46.640> go
just the other day which is when you go
just the other day which is when you go
to<00:00:46.840> a<00:00:46.960> drinks<00:00:47.280> party<00:00:47.520> and<00:00:47.600> you<00:00:47.760> stand<00:00:48.000> up<00:00:48.160> and
to a drinks party and you stand up and
to a drinks party and you stand up and
you<00:00:48.360> hold<00:00:48.559> a<00:00:48.680> glass<00:00:48.920> of<00:00:49.039> red<00:00:49.280> wine<00:00:49.600> and<00:00:49.760> you
you hold a glass of red wine and you
you hold a glass of red wine and you
talk<00:00:50.160> endlessly<00:00:50.640> to<00:00:50.800> people<00:00:51.559> you<00:00:51.680> don't
talk endlessly to people you don't
talk endlessly to people you don't
actually<00:00:52.239> want<00:00:52.399> to<00:00:52.520> spend<00:00:52.840> all<00:00:53.000> the<00:00:53.199> time
actually want to spend all the time
actually want to spend all the time
talking<00:00:54.079> it's<00:00:54.399> really<00:00:54.760> really<00:00:55.079> tiring
talking it's really really tiring
talking it's really really tiring
sometimes<00:00:56.280> you<00:00:56.399> just<00:00:56.520> want<00:00:56.640> to<00:00:56.800> stand<00:00:57.079> there
sometimes you just want to stand there
sometimes you just want to stand there
silently<00:00:58.000> alone<00:00:58.320> with<00:00:58.480> your<00:00:58.719> thoughts
silently alone with your thoughts
silently alone with your thoughts
sometimes<00:01:00.480> you<00:01:00.600> just<00:01:00.719> want<00:01:00.879> to<00:01:01.000> stand<00:01:01.199> in<00:01:01.320> the
sometimes you just want to stand in the
sometimes you just want to stand in the
corner<00:01:02.000> and<00:01:02.160> stare<00:01:02.480> out<00:01:02.640> of<00:01:02.760> the
corner and stare out of the
corner and stare out of the
window<00:01:04.879> now<00:01:05.040> the<00:01:05.159> problem<00:01:05.439> is<00:01:06.080> when<00:01:06.240> you<00:01:06.439> can't
window now the problem is when you can't
window now the problem is when you can't
smoke<00:01:08.159> if<00:01:08.240> you<00:01:08.439> stand<00:01:08.720> and<00:01:08.880> stare<00:01:09.200> out<00:01:09.320> of<00:01:09.479> the
smoke if you stand and stare out of the
smoke if you stand and stare out of the
window<00:01:10.159> on<00:01:10.320> your<00:01:10.720> own<00:01:11.720> you're<00:01:11.920> an<00:01:12.119> antisocial
window on your own you're an antisocial
window on your own you're an antisocial
friendless
friendless
friendless
idiot<00:01:16.400> if<00:01:16.479> you<00:01:16.600> stand<00:01:16.840> and<00:01:17.000> stare<00:01:17.240> out<00:01:17.360> of<00:01:17.479> the
idiot if you stand and stare out of the
idiot if you stand and stare out of the
window<00:01:17.799> on<00:01:17.920> your<00:01:18.040> own<00:01:18.280> with<00:01:18.400> a<00:01:18.600> cigarette
window on your own with a cigarette
window on your own with a cigarette
you're<00:01:19.759> a
philosopher<00:01:24.200> um
so<00:01:30.400> the<00:01:31.040> power<00:01:32.040> of<00:01:32.240> reframing
so the power of reframing
so the power of reframing
things<00:01:35.159> cannot<00:01:35.600> be<00:01:36.520> overstated<00:01:37.520> what<00:01:37.680> we<00:01:37.880> have
things cannot be overstated what we have
things cannot be overstated what we have
is<00:01:38.240> exactly<00:01:38.640> the<00:01:38.759> same<00:01:39.040> thing<00:01:39.479> the<00:01:39.600> same
is exactly the same thing the same
is exactly the same thing the same
activity<00:01:40.880> but<00:01:41.079> one<00:01:41.200> of<00:01:41.320> them<00:01:41.479> makes<00:01:41.680> you<00:01:41.840> feel
activity but one of them makes you feel
activity but one of them makes you feel
great<00:01:43.240> and<00:01:43.360> the<00:01:43.479> other<00:01:43.680> one<00:01:44.280> with<00:01:44.439> just<00:01:44.600> a
great and the other one with just a
great and the other one with just a
small<00:01:45.079> change<00:01:45.399> of<00:01:45.960> posture<00:01:46.960> makes<00:01:47.159> you<00:01:47.320> feel
small change of posture makes you feel
small change of posture makes you feel
terrible<00:01:49.520> and<00:01:49.640> I<00:01:49.719> think<00:01:49.840> one<00:01:49.960> of<00:01:50.040> the<00:01:50.119> problems
terrible and I think one of the problems
terrible and I think one of the problems
with<00:01:50.479> classical<00:01:50.880> economics<00:01:51.360> is<00:01:51.479> it's
with classical economics is it's
with classical economics is it's
absolutely<00:01:52.439> preoccupied<00:01:53.240> with
absolutely preoccupied with
absolutely preoccupied with
reality<00:01:54.960> and<00:01:55.159> reality<00:01:55.560> isn't<00:01:55.799> a<00:01:56.000> particularly
reality and reality isn't a particularly
reality and reality isn't a particularly
good<00:01:56.719> guide<00:01:56.960> to<00:01:57.159> human
good guide to human
good guide to human
happiness<00:01:59.280> why<00:01:59.479> for<00:02:00.200> example<00:02:01.200> a<00:02:01.840> pensioners
happiness why for example a pensioners
happiness why for example a pensioners
much<00:02:03.240> happier<00:02:04.240> than<00:02:04.399> the<00:02:04.520> young
much happier than the young
much happier than the young
unemployed<00:02:06.640> both<00:02:06.799> of<00:02:06.920> them<00:02:07.039> after<00:02:07.240> all<00:02:07.360> are<00:02:07.479> in
unemployed both of them after all are in
unemployed both of them after all are in
exactly<00:02:08.080> the<00:02:08.200> same<00:02:08.959> state<00:02:09.200> of<00:02:09.399> life<00:02:09.920> you<00:02:10.080> both
exactly the same state of life you both
exactly the same state of life you both
have<00:02:10.520> too<00:02:10.720> much<00:02:10.920> time<00:02:11.080> on<00:02:11.239> your<00:02:11.360> hands<00:02:11.720> and<00:02:11.879> not
have too much time on your hands and not
have too much time on your hands and not
much<00:02:12.680> money<00:02:13.680> but<00:02:13.920> pensioners<00:02:14.400> are<00:02:14.560> reportedly
much money but pensioners are reportedly
much money but pensioners are reportedly
very<00:02:15.319> very<00:02:15.599> happy<00:02:16.280> whereas<00:02:16.560> the<00:02:16.640> unemployed
very very happy whereas the unemployed
very very happy whereas the unemployed
are<00:02:17.360> extraordinarily<00:02:18.040> unhappy<00:02:18.440> and
are extraordinarily unhappy and
are extraordinarily unhappy and
depressed<00:02:20.640> the<00:02:20.760> reason<00:02:21.000> I<00:02:21.120> think<00:02:21.319> is<00:02:21.440> that<00:02:21.560> the
depressed the reason I think is that the
depressed the reason I think is that the
pensioners<00:02:22.120> believe<00:02:22.440> they've<00:02:22.680> chosen<00:02:23.040> to<00:02:23.160> be
pensioners believe they've chosen to be
pensioners believe they've chosen to be
pensioners<00:02:24.640> whereas<00:02:25.000> the<00:02:25.120> young<00:02:25.560> unemployed
pensioners whereas the young unemployed
pensioners whereas the young unemployed
feel<00:02:27.120> it's<00:02:27.360> been<00:02:27.519> thrust<00:02:27.959> upon<00:02:28.200> them
feel it's been thrust upon them
feel it's been thrust upon them
in<00:02:30.160> England<00:02:30.519> the<00:02:30.599> upper<00:02:30.840> middle<00:02:31.160> classes<00:02:31.640> have
in England the upper middle classes have
in England the upper middle classes have
actually<00:02:32.120> solved<00:02:32.519> this<00:02:32.720> problem<00:02:33.040> perfectly
actually solved this problem perfectly
actually solved this problem perfectly
because<00:02:34.160> they've<00:02:34.400> rebranded<00:02:35.440> unemployment
because they've rebranded unemployment
because they've rebranded unemployment
if<00:02:36.560> you're<00:02:36.680> an<00:02:36.800> upper<00:02:37.040> middle<00:02:37.280> class<00:02:37.519> English
if you're an upper middle class English
if you're an upper middle class English
person<00:02:38.480> you<00:02:38.640> call<00:02:38.959> unemployment<00:02:39.959> a<00:02:40.159> year
person you call unemployment a year
person you call unemployment a year
off
off
off
um<00:02:43.840> and<00:02:43.959> that's<00:02:44.200> because<00:02:44.640> having<00:02:44.840> a<00:02:45.000> son<00:02:45.200> who's
um and that's because having a son who's
um and that's because having a son who's
unemployed<00:02:45.959> in<00:02:46.080> Manchester<00:02:46.920> is<00:02:47.080> really<00:02:47.360> quite
unemployed in Manchester is really quite
unemployed in Manchester is really quite
embarrassing<00:02:48.840> but<00:02:49.040> having<00:02:49.280> a<00:02:49.440> son<00:02:50.080> who's
embarrassing but having a son who's
embarrassing but having a son who's
unemployed<00:02:50.840> in<00:02:51.040> Thailand<00:02:51.959> is<00:02:52.120> really<00:02:52.360> viewed
unemployed in Thailand is really viewed
unemployed in Thailand is really viewed
as<00:02:52.800> quite<00:02:53.000> an
as quite an
as quite an
accomplishment<00:02:56.040> but<00:02:56.239> actually<00:02:56.840> the<00:02:57.000> power<00:02:57.239> to
accomplishment but actually the power to
accomplishment but actually the power to
Rebrand<00:02:57.879> things<00:02:58.080> to<00:02:58.519> understand<00:02:58.680> that
Rebrand things to understand that
Rebrand things to understand that
actually<00:02:59.879> our<00:03:00.480> experiences<00:03:01.519> costs<00:03:02.959> things
actually our experiences costs things
actually our experiences costs things
don't<00:03:04.280> actually<00:03:04.560> much<00:03:04.760> depend<00:03:05.040> on<00:03:05.239> what<00:03:05.360> they
don't actually much depend on what they
don't actually much depend on what they
really<00:03:05.760> are<00:03:06.159> but<00:03:06.280> on<00:03:06.440> how<00:03:06.599> we<00:03:06.760> view<00:03:07.080> them<00:03:08.080> I
really are but on how we view them I
really are but on how we view them I
genuinely<00:03:08.760> think<00:03:09.360> can't<00:03:09.680> be<00:03:09.959> overstated
genuinely think can't be overstated
genuinely think can't be overstated
there's<00:03:11.120> an<00:03:11.239> experiment<00:03:11.640> I<00:03:11.720> think<00:03:11.879> Daniel
there's an experiment I think Daniel
there's an experiment I think Daniel
pink<00:03:12.640> refers<00:03:13.000> to<00:03:13.480> where<00:03:13.640> you<00:03:13.840> put<00:03:14.040> two<00:03:14.360> dogs<00:03:14.959> in
pink refers to where you put two dogs in
pink refers to where you put two dogs in
a<00:03:15.280> box<00:03:16.040> and<00:03:16.200> the<00:03:16.360> box<00:03:17.000> has<00:03:17.879> an<00:03:18.080> electric
a box and the box has an electric
a box and the box has an electric
floor<00:03:20.640> every<00:03:20.879> now<00:03:21.040> and<00:03:21.360> then<00:03:22.360> an<00:03:22.519> electric
floor every now and then an electric
floor every now and then an electric
shock<00:03:23.319> is<00:03:23.480> applied<00:03:23.840> to<00:03:23.959> the<00:03:24.159> floor<00:03:25.159> which
shock is applied to the floor which
shock is applied to the floor which
pains<00:03:25.879> the
pains the
pains the
dogs<00:03:27.920> the<00:03:28.000> only<00:03:28.200> difference<00:03:28.480> is<00:03:28.680> one<00:03:28.799> of<00:03:28.879> the
dogs the only difference is one of the
dogs the only difference is one of the
dogs<00:03:29.280> has<00:03:29.400> a<00:03:29.480> small<00:03:29.920> button<00:03:30.319> in<00:03:30.480> its<00:03:30.760> half<00:03:30.920> of
dogs has a small button in its half of
dogs has a small button in its half of
the<00:03:31.239> box<00:03:31.799> and<00:03:31.920> when<00:03:32.040> it<00:03:32.159> nuzzles<00:03:32.640> the<00:03:32.799> button
the box and when it nuzzles the button
the box and when it nuzzles the button
the<00:03:33.720> electric<00:03:34.080> shock
the electric shock
the electric shock
stops<00:03:36.720> the<00:03:36.840> other<00:03:37.159> dog<00:03:37.799> doesn't<00:03:38.120> have<00:03:38.280> the
stops the other dog doesn't have the
stops the other dog doesn't have the
button<00:03:39.159> it's<00:03:39.439> exposed<00:03:39.840> to<00:03:40.080> exactly<00:03:40.519> the<00:03:40.680> same
button it's exposed to exactly the same
button it's exposed to exactly the same
level<00:03:41.159> of<00:03:41.360> pain<00:03:41.920> as<00:03:42.040> the<00:03:42.159> dog<00:03:42.319> in<00:03:42.439> the<00:03:42.599> first
level of pain as the dog in the first
level of pain as the dog in the first
box<00:03:43.519> but<00:03:43.640> it<00:03:43.840> has<00:03:44.040> no<00:03:44.280> control<00:03:44.680> over<00:03:44.879> the
box but it has no control over the
box but it has no control over the
circumstances<00:03:47.480> generally<00:03:47.920> the<00:03:48.080> first<00:03:48.360> dog
circumstances generally the first dog
circumstances generally the first dog
can<00:03:48.799> be<00:03:48.959> relatively<00:03:49.439> content<00:03:50.360> the<00:03:50.519> second<00:03:50.879> dog
can be relatively content the second dog
can be relatively content the second dog
lapses<00:03:51.920> into<00:03:52.200> complete
lapses into complete
lapses into complete
depression<00:03:54.680> the<00:03:54.840> circumstances<00:03:55.480> of<00:03:55.599> Our
depression the circumstances of Our
depression the circumstances of Our
Lives<00:03:56.079> May<00:03:56.319> actually<00:03:56.640> matter<00:03:57.280> less<00:03:57.720> to<00:03:57.879> our
Lives May actually matter less to our
Lives May actually matter less to our
happiness<00:03:58.959> than<00:03:59.079> the<00:03:59.200> sense<00:03:59.400> of<00:03:59.799> control<00:04:00.400> we
happiness than the sense of control we
happiness than the sense of control we
feel<00:04:01.480> over<00:04:01.720> our
feel over our
feel over our
lives<00:04:03.840> it's<00:04:03.959> an<00:04:04.120> interesting
lives it's an interesting
lives it's an interesting
question<00:04:06.599> we<00:04:06.760> ask<00:04:07.040> the<00:04:07.200> question<00:04:07.599> the<00:04:07.760> whole
question we ask the question the whole
question we ask the question the whole
debate<00:04:08.400> in<00:04:08.519> the<00:04:08.599> western<00:04:08.920> world<00:04:09.159> is<00:04:09.280> about<00:04:09.480> the
debate in the western world is about the
debate in the western world is about the
level<00:04:09.799> of<00:04:10.439> Taxation<00:04:11.439> but<00:04:11.560> I<00:04:11.640> think<00:04:11.799> there's
level of Taxation but I think there's
level of Taxation but I think there's
another<00:04:12.280> debate<00:04:12.519> to<00:04:12.640> be<00:04:12.760> asked<00:04:13.079> which<00:04:13.200> is<00:04:13.560> the
another debate to be asked which is the
another debate to be asked which is the
level<00:04:13.959> of<00:04:14.200> control<00:04:14.640> we<00:04:14.840> have<00:04:15.120> over<00:04:15.360> our<00:04:15.560> tax
level of control we have over our tax
level of control we have over our tax
money<00:04:17.239> that<00:04:17.440> what<00:04:17.639> cost<00:04:17.919> us10<00:04:18.680> in<00:04:18.840> one<00:04:19.199> context
money that what cost us10 in one context
money that what cost us10 in one context
can<00:04:20.160> be<00:04:20.320> a<00:04:20.840> curse<00:04:21.840> what<00:04:22.040> costs<00:04:22.280> us<00:04:22.840> £10<00:04:23.840> in<00:04:23.960> a
can be a curse what costs us £10 in a
can be a curse what costs us £10 in a
different<00:04:24.479> context<00:04:25.160> we<00:04:25.320> may<00:04:25.600> actually
different context we may actually
different context we may actually
welcome<00:04:27.479> you<00:04:27.600> know<00:04:27.800> pay<00:04:28.080> 20,000<00:04:28.960> in<00:04:29.160> tax<00:04:29.919> uh
welcome you know pay 20,000 in tax uh
welcome you know pay 20,000 in tax uh
towards<00:04:31.000> health<00:04:31.960> and<00:04:32.080> you're<00:04:32.240> merely<00:04:32.520> feeling
towards health and you're merely feeling
towards health and you're merely feeling
a<00:04:32.919> mug<00:04:33.840> pay<00:04:34.199> 20,000<00:04:35.199> to<00:04:35.360> endow<00:04:35.880> a<00:04:36.039> hospital
a mug pay 20,000 to endow a hospital
a mug pay 20,000 to endow a hospital
Ward<00:04:37.160> and<00:04:37.240> you're<00:04:37.400> called<00:04:37.680> a
Ward and you're called a
Ward and you're called a
philanthropist<00:04:40.160> I'm<00:04:40.320> probably<00:04:40.520> in<00:04:40.639> the<00:04:40.720> wrong
philanthropist I'm probably in the wrong
philanthropist I'm probably in the wrong
country<00:04:41.320> to<00:04:41.479> talk<00:04:41.639> about<00:04:41.800> willingness<00:04:42.199> to<00:04:42.360> pay
country to talk about willingness to pay
country to talk about willingness to pay
tax
tax
tax
um<00:04:45.360> so
um so
um so
uh<00:04:47.600> I'll<00:04:47.800> give<00:04:47.919> you<00:04:48.000> one<00:04:48.160> in<00:04:48.400> return<00:04:48.680> how<00:04:48.880> you
uh I'll give you one in return how you
uh I'll give you one in return how you
frame<00:04:49.400> things<00:04:49.680> really<00:04:49.919> matters<00:04:50.600> do<00:04:50.759> you<00:04:50.960> call
frame things really matters do you call
frame things really matters do you call
it<00:04:51.320> the<00:04:51.440> bailout<00:04:51.880> of<00:04:52.080> Greece<00:04:52.759> or<00:04:52.960> the<00:04:53.039> bailout
it the bailout of Greece or the bailout
it the bailout of Greece or the bailout
of<00:04:53.479> a<00:04:53.600> load<00:04:53.759> of<00:04:53.960> stupid<00:04:54.320> Banks<00:04:54.680> which<00:04:54.840> lent<00:04:55.120> to
of a load of stupid Banks which lent to
of a load of stupid Banks which lent to
Greece<00:04:57.160> because<00:04:57.639> they<00:04:57.759> are<00:04:58.039> actually<00:04:58.320> the
Greece because they are actually the
Greece because they are actually the
same<00:04:58.800> thing<00:04:59.479> what<00:04:59.840> you<00:04:59.960> call<00:05:00.280> them<00:05:00.840> actually
same thing what you call them actually
same thing what you call them actually
affects<00:05:01.759> how<00:05:01.880> you<00:05:02.080> react<00:05:02.360> to<00:05:02.520> them<00:05:03.360> viscerally
affects how you react to them viscerally
affects how you react to them viscerally
and<00:05:04.520> morally<00:05:05.479> I<00:05:05.560> think<00:05:05.759> psychological<00:05:06.400> value
and morally I think psychological value
and morally I think psychological value
is<00:05:06.919> great<00:05:07.280> to<00:05:07.440> be<00:05:07.560> absolutely<00:05:07.880> honest<00:05:08.560> one<00:05:08.680> of
is great to be absolutely honest one of
is great to be absolutely honest one of
my<00:05:08.919> great<00:05:09.080> friends<00:05:09.680> um<00:05:10.320> a<00:05:10.479> professor<00:05:10.759> called
my great friends um a professor called
my great friends um a professor called
Nick<00:05:11.160> chater<00:05:11.560> who<00:05:11.680> is<00:05:11.840> the<00:05:12.000> professor<00:05:12.280> of
Nick chater who is the professor of
Nick chater who is the professor of
decision<00:05:12.840> Sciences<00:05:13.360> in<00:05:13.520> London<00:05:14.360> believes
decision Sciences in London believes
decision Sciences in London believes
that<00:05:14.840> we<00:05:14.919> should<00:05:15.080> spend<00:05:15.320> far<00:05:15.520> less<00:05:15.840> time
that we should spend far less time
that we should spend far less time
looking<00:05:16.639> into<00:05:17.160> Humanity's<00:05:17.800> hidden<00:05:18.160> depths
looking into Humanity's hidden depths
looking into Humanity's hidden depths
and<00:05:19.080> spend<00:05:19.400> much<00:05:19.560> more<00:05:19.759> time<00:05:20.000> exploring<00:05:20.440> the
and spend much more time exploring the
and spend much more time exploring the
hidden
hidden
hidden
shallows<00:05:22.400> I<00:05:22.479> think<00:05:22.680> that's<00:05:22.880> true<00:05:23.160> actually<00:05:23.440> I
shallows I think that's true actually I
shallows I think that's true actually I
think<00:05:23.840> Impressions<00:05:24.759> have<00:05:24.960> an<00:05:25.160> insane<00:05:25.720> effect
think Impressions have an insane effect
think Impressions have an insane effect
on<00:05:26.479> what<00:05:26.639> we<00:05:26.840> think<00:05:27.280> and<00:05:27.479> what<00:05:27.600> we<00:05:28.000> do<00:05:29.000> but<00:05:29.160> what
on what we think and what we do but what
on what we think and what we do but what
we<00:05:29.360> don't<00:05:29.800> have<00:05:30.039> is<00:05:30.440> a<00:05:30.639> really<00:05:30.919> good<00:05:31.240> model<00:05:31.720> of
we don't have is a really good model of
we don't have is a really good model of
human<00:05:32.160> psychology<00:05:32.680> at<00:05:32.800> least<00:05:33.000> pre<00:05:33.360> caraman
human psychology at least pre caraman
human psychology at least pre caraman
perhaps<00:05:35.000> we<00:05:35.160> didn't<00:05:35.479> have<00:05:35.639> a<00:05:35.800> really<00:05:36.039> good
perhaps we didn't have a really good
perhaps we didn't have a really good
model<00:05:36.479> of<00:05:36.639> human<00:05:36.960> psychology<00:05:37.880> to<00:05:38.080> put
model of human psychology to put
model of human psychology to put
alongside<00:05:39.479> models<00:05:39.919> of<00:05:40.199> engineering<00:05:41.039> of
alongside models of engineering of
alongside models of engineering of
neoclassical<00:05:42.000> economics<00:05:42.880> so<00:05:43.360> people<00:05:43.560> who
neoclassical economics so people who
neoclassical economics so people who
believed<00:05:44.000> in<00:05:44.120> psychological<00:05:44.759> Solutions
believed in psychological Solutions
believed in psychological Solutions
didn't<00:05:45.560> have<00:05:45.759> a<00:05:45.880> model<00:05:46.280> we<00:05:46.400> didn't<00:05:46.720> have<00:05:46.840> a
didn't have a model we didn't have a
didn't have a model we didn't have a
framework<00:05:48.280> uh<00:05:48.400> this<00:05:48.479> is<00:05:48.600> what<00:05:48.720> Warren
framework uh this is what Warren
framework uh this is what Warren
Buffett's<00:05:49.440> business<00:05:49.720> partner<00:05:50.000> Charlie<00:05:50.280> Munga
Buffett's business partner Charlie Munga
Buffett's business partner Charlie Munga
calls<00:05:51.080> a<00:05:51.240> ltis<00:05:51.680> work<00:05:51.960> on<00:05:52.160> which<00:05:52.360> to<00:05:52.560> hang<00:05:52.800> your
calls a ltis work on which to hang your
calls a ltis work on which to hang your
ideas<00:05:54.840> Engineers<00:05:55.840> economists<00:05:56.639> classical
ideas Engineers economists classical
ideas Engineers economists classical
economists<00:05:57.639> all<00:05:57.880> had<00:05:58.000> a<00:05:58.160> very<00:05:58.400> very<00:05:58.639> robust
economists all had a very very robust
economists all had a very very robust
existing<00:05:59.720> latis<00:06:00.120> work<00:06:00.560> on<00:06:00.759> which<00:06:01.000> practically
existing latis work on which practically
existing latis work on which practically
every<00:06:01.720> idea<00:06:02.080> could<00:06:02.240> be<00:06:02.440> hung<00:06:03.319> we<00:06:03.520> merely<00:06:03.919> had<00:06:04.160> a
every idea could be hung we merely had a
every idea could be hung we merely had a
collection<00:06:04.680> of<00:06:04.919> random<00:06:05.400> individual<00:06:06.000> insights
collection of random individual insights
collection of random individual insights
without<00:06:07.000> an<00:06:07.120> overall<00:06:07.919> model<00:06:08.919> and<00:06:09.080> what<00:06:09.240> that
without an overall model and what that
without an overall model and what that
means<00:06:09.919> is<00:06:10.280> that<00:06:11.280> in<00:06:11.479> looking<00:06:11.759> at<00:06:12.440> Solutions
means is that in looking at Solutions
means is that in looking at Solutions
we've<00:06:13.840> probably<00:06:14.759> given<00:06:15.080> too<00:06:15.319> much<00:06:15.639> priority
we've probably given too much priority
we've probably given too much priority
to<00:06:16.199> what<00:06:16.319> I'd<00:06:16.479> call<00:06:16.720> technical<00:06:17.319> engineering
to what I'd call technical engineering
to what I'd call technical engineering
Solutions<00:06:18.759> Newtonian<00:06:19.440> Solutions<00:06:20.199> and<00:06:20.360> not
Solutions Newtonian Solutions and not
Solutions Newtonian Solutions and not
nearly<00:06:20.800> enough<00:06:21.000> to<00:06:21.120> the<00:06:21.280> psych<00:06:21.599> psychological
nearly enough to the psych psychological
nearly enough to the psych psychological
ones<00:06:22.599> you<00:06:22.720> know<00:06:22.919> my<00:06:23.080> example<00:06:23.360> of<00:06:23.479> the<00:06:23.960> Eurostar
ones you know my example of the Eurostar
ones you know my example of the Eurostar
£6<00:06:25.319> million<00:06:25.919> spent<00:06:26.160> to<00:06:26.280> reduce<00:06:26.599> the<00:06:26.720> journey
£6 million spent to reduce the journey
£6 million spent to reduce the journey
time<00:06:27.759> between<00:06:28.199> Paris<00:06:28.720> and<00:06:28.919> London<00:06:29.440> but<00:06:29.599> by
time between Paris and London but by
time between Paris and London but by
about<00:06:29.919> 40<00:06:30.720> minutes<00:06:31.720> for<00:06:32.240> 0.01%<00:06:33.240> of<00:06:33.360> this<00:06:33.479> money
about 40 minutes for 0.01% of this money
about 40 minutes for 0.01% of this money
you<00:06:33.880> could<00:06:34.039> have<00:06:34.160> put<00:06:34.400> Wi-Fi<00:06:34.800> on<00:06:34.919> the<00:06:35.000> trains
you could have put Wi-Fi on the trains
you could have put Wi-Fi on the trains
which<00:06:35.800> wouldn't<00:06:36.039> have<00:06:36.160> reduced<00:06:36.560> the<00:06:36.680> duration
which wouldn't have reduced the duration
which wouldn't have reduced the duration
of<00:06:37.199> the<00:06:37.319> journey<00:06:37.919> but<00:06:38.080> would<00:06:38.199> have<00:06:38.400> improved
of the journey but would have improved
of the journey but would have improved
its<00:06:39.199> enjoyment<00:06:40.000> and<00:06:40.160> its<00:06:40.479> usefulness<00:06:41.360> far
its enjoyment and its usefulness far
its enjoyment and its usefulness far
more<00:06:43.240> for<00:06:43.440> maybe<00:06:43.720> 10%<00:06:44.240> of<00:06:44.360> the<00:06:44.440> money<00:06:44.680> you
more for maybe 10% of the money you
more for maybe 10% of the money you
could<00:06:44.880> have<00:06:45.000> paid<00:06:45.160> all<00:06:45.280> of<00:06:45.400> the<00:06:45.560> world's<00:06:45.840> top
could have paid all of the world's top
could have paid all of the world's top
male<00:06:46.199> and<00:06:46.360> female<00:06:46.720> supermodels<00:06:47.599> to<00:06:47.759> walk<00:06:48.000> up
male and female supermodels to walk up
male and female supermodels to walk up
and<00:06:48.280> down<00:06:48.400> the<00:06:48.520> train<00:06:48.919> handing<00:06:49.199> out<00:06:49.360> free
and down the train handing out free
and down the train handing out free
Shadow<00:06:50.080> petruse<00:06:50.880> to<00:06:51.039> all<00:06:51.160> the
Shadow petruse to all the
Shadow petruse to all the
passengers<00:06:53.639> you'd<00:06:53.880> still<00:06:54.120> have<00:06:54.319> 5<00:06:54.560> billion<00:06:55.479> in
passengers you'd still have 5 billion in
passengers you'd still have 5 billion in
change<00:06:56.080> and<00:06:56.199> people<00:06:56.400> would<00:06:56.520> ask<00:06:56.680> for<00:06:56.800> the
change and people would ask for the
change and people would ask for the
trains<00:06:57.160> to<00:06:57.240> be<00:06:57.360> slowed<00:06:57.800> down
why<00:07:03.039> were<00:07:03.240> we<00:07:03.400> not<00:07:03.639> given<00:07:04.240> the<00:07:04.400> chance<00:07:04.680> to
why were we not given the chance to
why were we not given the chance to
solve<00:07:05.199> that<00:07:05.400> problem<00:07:05.680> psychologically<00:07:06.479> I
solve that problem psychologically I
solve that problem psychologically I
think<00:07:06.840> it's<00:07:07.120> because<00:07:07.879> there's<00:07:08.120> an<00:07:08.280> imbalance
think it's because there's an imbalance
think it's because there's an imbalance
an<00:07:09.160> asymmetry<00:07:10.160> in<00:07:10.280> the<00:07:10.440> way<00:07:10.599> we<00:07:10.759> treat
an asymmetry in the way we treat
an asymmetry in the way we treat
creative<00:07:12.479> emotionally<00:07:13.039> driven
creative emotionally driven
creative emotionally driven
psychological<00:07:14.560> ideas<00:07:15.560> versus<00:07:15.919> the<00:07:16.000> way<00:07:16.160> we
psychological ideas versus the way we
psychological ideas versus the way we
treat<00:07:16.879> rational<00:07:17.520> numerical<00:07:18.199> spreadsheet
treat rational numerical spreadsheet
treat rational numerical spreadsheet
driven<00:07:19.280> ideas<00:07:20.280> if<00:07:20.400> you're<00:07:20.520> a<00:07:20.639> creative<00:07:21.000> person
driven ideas if you're a creative person
driven ideas if you're a creative person
I<00:07:21.400> think<00:07:21.560> quite<00:07:21.800> rightly<00:07:22.440> you<00:07:22.599> have<00:07:22.720> to<00:07:22.800> share
I think quite rightly you have to share
I think quite rightly you have to share
all<00:07:23.240> your<00:07:23.400> ideas<00:07:23.759> for<00:07:23.960> approval<00:07:24.440> with<00:07:24.560> people
all your ideas for approval with people
all your ideas for approval with people
much<00:07:25.000> more<00:07:25.240> rational<00:07:25.599> than<00:07:25.840> you<00:07:26.840> you<00:07:26.960> have<00:07:27.080> to
much more rational than you you have to
much more rational than you you have to
go<00:07:27.360> in<00:07:27.560> and<00:07:27.680> you<00:07:27.840> have<00:07:27.960> to<00:07:28.680> have<00:07:28.800> a<00:07:28.960> cost
go in and you have to have a cost
go in and you have to have a cost
benefit<00:07:29.680> analysis<00:07:30.080> of<00:07:30.280> feasibility<00:07:31.039> study
benefit analysis of feasibility study
benefit analysis of feasibility study
and<00:07:31.479> Roi<00:07:31.960> study<00:07:32.280> and<00:07:32.400> so<00:07:32.639> forth<00:07:33.240> and<00:07:33.319> I<00:07:33.440> think
and Roi study and so forth and I think
and Roi study and so forth and I think
that's<00:07:33.800> probably
that's probably
that's probably
right<00:07:35.840> but<00:07:36.039> this<00:07:36.160> does<00:07:36.319> not<00:07:36.520> apply<00:07:36.840> the<00:07:36.919> other
right but this does not apply the other
right but this does not apply the other
way<00:07:37.599> around<00:07:38.599> people<00:07:38.800> who<00:07:38.960> have<00:07:39.080> an<00:07:39.280> existing
way around people who have an existing
way around people who have an existing
framework<00:07:40.319> an<00:07:40.479> economic<00:07:40.919> framework<00:07:41.319> and
framework an economic framework and
framework an economic framework and
Engineering<00:07:42.039> framework<00:07:43.039> feel<00:07:43.440> that<00:07:43.680> actually
Engineering framework feel that actually
Engineering framework feel that actually
logic<00:07:45.039> is<00:07:45.159> its<00:07:45.319> own<00:07:45.879> answer<00:07:46.879> what<00:07:47.000> they<00:07:47.120> don't
logic is its own answer what they don't
logic is its own answer what they don't
say<00:07:47.560> is<00:07:47.800> well<00:07:47.960> the<00:07:48.039> numbers<00:07:48.319> all<00:07:48.479> seem<00:07:48.680> to<00:07:48.840> add
say is well the numbers all seem to add
say is well the numbers all seem to add
up<00:07:49.360> but<00:07:49.520> before<00:07:49.720> I<00:07:49.840> present<00:07:50.159> this<00:07:50.319> idea<00:07:50.680> I'll
up but before I present this idea I'll
up but before I present this idea I'll
go<00:07:50.960> and<00:07:51.080> show<00:07:51.240> it<00:07:51.360> to<00:07:51.440> some<00:07:51.639> really<00:07:51.919> crazy
go and show it to some really crazy
go and show it to some really crazy
people<00:07:52.599> to<00:07:52.720> see<00:07:52.840> if<00:07:52.960> they<00:07:53.080> can<00:07:53.199> come<00:07:53.319> up<00:07:53.479> with
people to see if they can come up with
people to see if they can come up with
something<00:07:54.159> better<00:07:55.159> and<00:07:55.240> so<00:07:55.440> we<00:07:55.720> artificially
something better and so we artificially
something better and so we artificially
I<00:07:56.680> think<00:07:57.479> prioritize<00:07:58.479> what<00:07:58.639> I'd<00:07:58.840> call
I think prioritize what I'd call
I think prioritize what I'd call
mechanistic<00:08:00.080> ideas<00:08:00.720> over<00:08:01.000> psychological
mechanistic ideas over psychological
mechanistic ideas over psychological
ideas<00:08:02.840> an<00:08:03.000> example<00:08:03.280> of<00:08:03.360> a<00:08:03.479> great
ideas an example of a great
ideas an example of a great
psychological<00:08:04.120> idea<00:08:04.440> the<00:08:04.520> single<00:08:04.879> best
psychological idea the single best
psychological idea the single best
Improvement<00:08:05.560> in<00:08:05.759> passenger<00:08:06.199> satisfaction<00:08:06.800> on
Improvement in passenger satisfaction on
Improvement in passenger satisfaction on
the<00:08:07.039> London<00:08:07.400> Underground<00:08:08.319> per<00:08:08.560> pound<00:08:08.919> spent
the London Underground per pound spent
the London Underground per pound spent
came<00:08:10.599> when<00:08:11.280> they<00:08:11.400> didn't<00:08:11.639> add<00:08:11.879> any<00:08:12.039> extra
came when they didn't add any extra
came when they didn't add any extra
trains<00:08:12.840> nor<00:08:13.080> change<00:08:13.440> the<00:08:13.599> frequency<00:08:14.080> of<00:08:14.159> the
trains nor change the frequency of the
trains nor change the frequency of the
trains<00:08:14.800> they<00:08:14.960> put<00:08:15.159> do<00:08:15.479> Matrix<00:08:15.919> display<00:08:16.280> boards
trains they put do Matrix display boards
trains they put do Matrix display boards
on<00:08:16.840> the
on the
on the
platforms<00:08:18.919> because<00:08:19.199> the<00:08:19.319> nature<00:08:19.639> of<00:08:19.759> a<00:08:19.919> weight
platforms because the nature of a weight
platforms because the nature of a weight
is<00:08:20.479> not<00:08:20.680> just<00:08:20.879> dependent<00:08:21.280> on<00:08:21.440> its<00:08:21.639> numerical
is not just dependent on its numerical
is not just dependent on its numerical
quality<00:08:22.840> its<00:08:23.039> duration<00:08:24.000> but<00:08:24.120> on<00:08:24.240> the<00:08:24.360> level<00:08:24.599> of
quality its duration but on the level of
quality its duration but on the level of
uncertainty<00:08:25.400> you<00:08:25.639> experience<00:08:26.159> during<00:08:26.479> that
uncertainty you experience during that
uncertainty you experience during that
weight<00:08:27.440> waiting<00:08:27.800> 7<00:08:28.080> minutes<00:08:28.319> for<00:08:28.479> a<00:08:28.599> train
weight waiting 7 minutes for a train
weight waiting 7 minutes for a train
with<00:08:29.039> a<00:08:29.159> count<00:08:29.560> down<00:08:29.800> clock<00:08:30.400> is<00:08:30.639> less
with a count down clock is less
with a count down clock is less
frustrating<00:08:31.400> and<00:08:31.520> irritating<00:08:32.279> than<00:08:32.440> waiting
frustrating and irritating than waiting
frustrating and irritating than waiting
4<00:08:33.000> minutes<00:08:33.560> knuckle<00:08:33.959> biting<00:08:34.440> going<00:08:35.279> when's
4 minutes knuckle biting going when's
4 minutes knuckle biting going when's
this<00:08:35.760> train<00:08:36.039> going<00:08:36.159> to<00:08:36.320> damn<00:08:36.519> well<00:08:37.159> arrive
this train going to damn well arrive
this train going to damn well arrive
here's<00:08:38.360> a<00:08:38.440> beautiful<00:08:38.760> example<00:08:39.039> of<00:08:39.120> a
here's a beautiful example of a
here's a beautiful example of a
psychological<00:08:39.760> solution<00:08:40.159> deployed<00:08:40.599> in<00:08:40.919> Korea
psychological solution deployed in Korea
psychological solution deployed in Korea
red<00:08:42.279> traffic<00:08:42.599> lights<00:08:43.000> have<00:08:43.120> a<00:08:43.240> countdown
red traffic lights have a countdown
red traffic lights have a countdown
delay<00:08:44.360> it's<00:08:44.560> proven<00:08:44.920> to<00:08:45.080> reduce<00:08:45.399> the<00:08:45.600> accident
delay it's proven to reduce the accident
delay it's proven to reduce the accident
rate<00:08:46.360> in<00:08:46.600> experiments<00:08:47.600> why<00:08:48.040> because<00:08:48.279> road
rate in experiments why because road
rate in experiments why because road
range<00:08:49.080> impatience<00:08:49.720> and<00:08:49.880> general<00:08:50.200> irritation
range impatience and general irritation
range impatience and general irritation
are<00:08:51.160> massively<00:08:51.600> reduced<00:08:52.240> when<00:08:52.399> you<00:08:52.519> can
are massively reduced when you can
are massively reduced when you can
actually<00:08:53.000> see<00:08:53.880> the<00:08:54.279> the<00:08:54.399> time<00:08:54.600> you<00:08:54.720> have<00:08:54.839> to
actually see the the time you have to
actually see the the time you have to
wait<00:08:56.040> in<00:08:56.240> China<00:08:56.680> not<00:08:56.839> really<00:08:57.279> understanding
wait in China not really understanding
wait in China not really understanding
the<00:08:57.680> principle<00:08:58.079> behind<00:08:58.399> this<00:08:58.720> they<00:08:58.839> apply<00:08:59.120> the
the principle behind this they apply the
the principle behind this they apply the
same<00:08:59.519> principle<00:08:59.839> to<00:09:00.000> Green<00:09:00.320> traffic<00:09:01.040> lights
um<00:09:05.680> which<00:09:05.839> isn't<00:09:06.079> a<00:09:06.240> great<00:09:06.519> idea<00:09:06.920> you're<00:09:07.360> 200
um which isn't a great idea you're 200
um which isn't a great idea you're 200
yards<00:09:07.920> away<00:09:08.160> you<00:09:08.279> realize<00:09:08.640> you<00:09:08.760> got<00:09:09.000> 5<00:09:09.240> Seconds
yards away you realize you got 5 Seconds
yards away you realize you got 5 Seconds
To<00:09:09.720> Go<00:09:10.120> you<00:09:10.279> floor
it<00:09:14.120> um<00:09:14.760> the<00:09:14.880> Koreans<00:09:15.440> very<00:09:15.600> assiduously<00:09:16.120> did
it um the Koreans very assiduously did
it um the Koreans very assiduously did
test<00:09:16.640> both<00:09:16.880> the<00:09:17.000> accident<00:09:17.399> rate<00:09:17.640> goes<00:09:17.959> down
test both the accident rate goes down
test both the accident rate goes down
when<00:09:18.360> you<00:09:18.480> apply<00:09:18.760> this<00:09:18.880> to<00:09:19.040> Red<00:09:19.240> traffic
when you apply this to Red traffic
when you apply this to Red traffic
lights<00:09:19.959> it<00:09:20.120> goes<00:09:20.399> up<00:09:20.640> when<00:09:20.760> you<00:09:20.880> apply<00:09:21.160> it<00:09:21.279> to
lights it goes up when you apply it to
lights it goes up when you apply it to
Green<00:09:21.839> traffic<00:09:22.240> lights<00:09:23.240> this<00:09:23.399> is<00:09:23.519> all<00:09:23.680> I'm
Green traffic lights this is all I'm
Green traffic lights this is all I'm
asking<00:09:24.120> for<00:09:24.399> really<00:09:24.560> in<00:09:24.720> human<00:09:25.000> decision-
asking for really in human decision-
asking for really in human decision-
making<00:09:25.720> is<00:09:25.839> the<00:09:26.000> consideration<00:09:26.560> of<00:09:26.760> these
making is the consideration of these
making is the consideration of these
three<00:09:27.360> things<00:09:27.720> I'm<00:09:27.839> not<00:09:28.000> asking<00:09:28.240> for<00:09:28.399> the
three things I'm not asking for the
three things I'm not asking for the
complete<00:09:28.920> Primacy<00:09:29.519> of<00:09:29.680> one<00:09:29.839> over<00:09:30.079> the<00:09:30.200> other
complete Primacy of one over the other
complete Primacy of one over the other
I'm<00:09:30.839> merely<00:09:31.120> saying<00:09:31.440> that<00:09:31.560> when<00:09:31.720> you<00:09:31.880> solve
I'm merely saying that when you solve
I'm merely saying that when you solve
problems<00:09:33.000> you<00:09:33.079> should<00:09:33.279> look<00:09:33.440> at<00:09:33.600> all<00:09:33.800> three<00:09:34.000> of
problems you should look at all three of
problems you should look at all three of
these
these
these
equally<00:09:36.160> and<00:09:36.279> you<00:09:36.360> should<00:09:36.560> seek<00:09:36.920> as<00:09:37.079> far<00:09:37.279> as
equally and you should seek as far as
equally and you should seek as far as
possible<00:09:38.120> to<00:09:38.279> find<00:09:38.560> Solutions<00:09:39.040> which<00:09:39.200> sit<00:09:39.360> in
possible to find Solutions which sit in
possible to find Solutions which sit in
the<00:09:39.600> sweet<00:09:39.880> spot<00:09:40.160> in<00:09:40.240> the<00:09:40.320> middle<00:09:40.880> if<00:09:41.000> you
the sweet spot in the middle if you
the sweet spot in the middle if you
actually<00:09:41.320> look<00:09:41.440> at<00:09:41.519> a<00:09:41.640> great<00:09:41.959> business<00:09:42.560> you'll
actually look at a great business you'll
actually look at a great business you'll
nearly<00:09:43.120> always<00:09:43.399> see<00:09:43.920> all<00:09:44.079> of<00:09:44.279> these<00:09:44.519> three
nearly always see all of these three
nearly always see all of these three
things<00:09:45.399> coming<00:09:45.640> into<00:09:45.880> play<00:09:46.800> really<00:09:47.079> really
things coming into play really really
things coming into play really really
successful<00:09:47.839> businesses<00:09:48.640> Google<00:09:49.040> is<00:09:49.160> a<00:09:49.360> great
successful businesses Google is a great
successful businesses Google is a great
great<00:09:49.959> technological<00:09:50.640> success<00:09:51.279> but<00:09:51.399> it's
great technological success but it's
great technological success but it's
also<00:09:52.279> based<00:09:52.480> on<00:09:52.600> a<00:09:52.720> very<00:09:52.880> good<00:09:53.040> psychological
also based on a very good psychological
also based on a very good psychological
insight<00:09:55.440> people<00:09:55.800> believe<00:09:56.200> something<00:09:56.519> that
insight people believe something that
insight people believe something that
only<00:09:56.920> does<00:09:57.240> one<00:09:57.600> thing<00:09:58.040> is<00:09:58.279> better<00:09:58.600> at<00:09:58.800> that
only does one thing is better at that
only does one thing is better at that
thing<00:09:59.640> than<00:09:59.839> something<00:10:00.120> that<00:10:00.279> does<00:10:00.640> that
thing than something that does that
thing than something that does that
thing<00:10:01.360> and<00:10:01.640> something<00:10:01.959> else<00:10:02.399> it's<00:10:02.519> an<00:10:02.760> innate
thing and something else it's an innate
thing and something else it's an innate
thing<00:10:03.800> called<00:10:04.120> gold<00:10:04.440> dilution<00:10:04.959> alet<00:10:05.399> Fishback
thing called gold dilution alet Fishback
thing called gold dilution alet Fishback
has<00:10:06.000> written<00:10:06.240> a<00:10:06.360> paper<00:10:06.680> about<00:10:06.959> this<00:10:07.760> everybody
has written a paper about this everybody
has written a paper about this everybody
else<00:10:08.360> at<00:10:08.480> the<00:10:08.600> time<00:10:08.720> of<00:10:08.880> Google<00:10:09.160> more<00:10:09.279> or<00:10:09.440> less
else at the time of Google more or less
else at the time of Google more or less
was<00:10:09.800> trying<00:10:10.040> to<00:10:10.160> be<00:10:10.399> a<00:10:10.560> portal<00:10:11.360> yes<00:10:11.560> there's<00:10:11.680> a
was trying to be a portal yes there's a
was trying to be a portal yes there's a
search<00:10:12.160> function<00:10:12.560> but<00:10:12.680> you<00:10:12.839> also<00:10:13.160> have
search function but you also have
search function but you also have
weather<00:10:14.160> sports<00:10:14.600> scores<00:10:15.120> bits<00:10:15.399> of
weather sports scores bits of
weather sports scores bits of
news<00:10:17.240> Google<00:10:17.640> understood<00:10:18.079> that<00:10:18.240> if<00:10:18.320> you're
news Google understood that if you're
news Google understood that if you're
just<00:10:18.760> a<00:10:18.920> search<00:10:19.240> engine<00:10:19.680> people<00:10:20.000> assume
just a search engine people assume
just a search engine people assume
you're<00:10:20.519> a<00:10:20.720> very<00:10:21.000> very<00:10:21.240> good<00:10:21.440> search<00:10:21.760> engine
you're a very very good search engine
you're a very very good search engine
all<00:10:22.760> of<00:10:22.880> you<00:10:23.000> know<00:10:23.200> this<00:10:23.480> actually<00:10:23.680> from<00:10:23.880> when
all of you know this actually from when
all of you know this actually from when
you<00:10:24.079> go<00:10:24.240> in<00:10:24.360> to<00:10:24.480> buy<00:10:24.640> a<00:10:24.760> television<00:10:25.600> and<00:10:25.720> in<00:10:25.839> the
you go in to buy a television and in the
you go in to buy a television and in the
shabbier<00:10:26.519> end<00:10:27.079> of<00:10:27.279> the<00:10:27.600> row<00:10:27.880> of<00:10:28.040> flat<00:10:28.320> screen
shabbier end of the row of flat screen
shabbier end of the row of flat screen
TVs<00:10:28.959> you<00:10:29.040> can<00:10:29.160> see
TVs you can see
TVs you can see
are<00:10:30.200> these<00:10:30.440> rather<00:10:30.720> despised<00:10:31.200> things<00:10:31.480> called
are these rather despised things called
are these rather despised things called
combined<00:10:32.680> TV<00:10:33.079> and<00:10:33.279> DVD<00:10:34.079> players<00:10:35.079> and<00:10:35.200> we<00:10:35.320> have
combined TV and DVD players and we have
combined TV and DVD players and we have
no<00:10:35.760> knowledge<00:10:36.240> whatsoever<00:10:36.720> of<00:10:36.839> the<00:10:36.920> quality
no knowledge whatsoever of the quality
no knowledge whatsoever of the quality
of<00:10:37.399> those<00:10:37.560> things<00:10:37.880> but<00:10:38.000> we<00:10:38.120> look<00:10:38.240> at<00:10:38.360> a
of those things but we look at a
of those things but we look at a
combined<00:10:39.040> TV<00:10:39.320> and<00:10:39.519> DVD<00:10:39.959> player<00:10:40.320> and<00:10:40.440> we<00:10:40.600> go<00:10:41.040> g
combined TV and DVD player and we go g
combined TV and DVD player and we go g
it's<00:10:41.959> probably<00:10:42.279> a<00:10:42.399> bit<00:10:42.560> of<00:10:42.639> a<00:10:42.800> crap<00:10:43.120> Telly<00:10:43.639> and
it's probably a bit of a crap Telly and
it's probably a bit of a crap Telly and
a<00:10:43.880> bit<00:10:44.079> rubbish<00:10:44.440> as<00:10:44.600> a<00:10:44.680> DVD<00:10:45.160> player<00:10:45.720> so<00:10:45.880> we<00:10:46.040> walk
a bit rubbish as a DVD player so we walk
a bit rubbish as a DVD player so we walk
out<00:10:46.360> of<00:10:46.480> the<00:10:46.600> shops<00:10:46.920> with<00:10:47.079> one<00:10:47.240> of<00:10:47.760> each<00:10:48.760> Google
out of the shops with one of each Google
out of the shops with one of each Google
is<00:10:49.240> as<00:10:49.360> much<00:10:49.519> a<00:10:49.839> psychological<00:10:50.839> uh<00:10:51.000> success<00:10:51.760> as
is as much a psychological uh success as
is as much a psychological uh success as
it<00:10:52.000> is<00:10:52.240> a<00:10:52.399> technological<00:10:53.320> one<00:10:54.320> I<00:10:54.480> propose<00:10:54.800> that
it is a technological one I propose that
it is a technological one I propose that
we<00:10:55.000> can<00:10:55.120> use<00:10:55.399> psychology<00:10:55.959> to<00:10:56.120> solve<00:10:56.519> problems
we can use psychology to solve problems
we can use psychology to solve problems
that<00:10:57.120> we<00:10:57.240> didn't<00:10:57.480> even<00:10:57.720> realize<00:10:58.040> were
that we didn't even realize were
that we didn't even realize were
problems<00:10:58.600> at<00:10:58.720> all<00:10:59.320> this<00:10:59.399> is<00:10:59.519> my<00:10:59.639> suggestion
problems at all this is my suggestion
problems at all this is my suggestion
for<00:11:00.120> getting<00:11:00.320> people<00:11:00.519> to<00:11:00.639> finish<00:11:00.920> their
for getting people to finish their
for getting people to finish their
course<00:11:01.279> of<00:11:01.560> antibiotics<00:11:02.560> don't<00:11:02.839> give<00:11:03.000> them<00:11:03.200> 24
course of antibiotics don't give them 24
course of antibiotics don't give them 24
white<00:11:04.040> pills<00:11:04.639> give<00:11:04.800> them<00:11:04.959> 18<00:11:05.399> white<00:11:05.639> pills<00:11:06.200> and
white pills give them 18 white pills and
white pills give them 18 white pills and
six<00:11:06.720> blue<00:11:06.959> ones<00:11:07.680> and<00:11:07.800> tell<00:11:08.000> them<00:11:08.120> to<00:11:08.240> take<00:11:08.399> the
six blue ones and tell them to take the
six blue ones and tell them to take the
white<00:11:08.800> pills<00:11:09.240> first<00:11:09.760> and<00:11:09.880> then<00:11:10.079> take<00:11:10.279> the<00:11:10.399> blue
white pills first and then take the blue
white pills first and then take the blue
ones<00:11:12.200> it's<00:11:12.360> called<00:11:12.639> chunking<00:11:13.399> the<00:11:13.560> likelihood
ones it's called chunking the likelihood
ones it's called chunking the likelihood
that<00:11:14.160> people<00:11:14.360> will<00:11:14.519> get<00:11:14.639> to<00:11:14.800> the<00:11:14.920> end<00:11:15.320> is<00:11:15.519> much
that people will get to the end is much
that people will get to the end is much
greater<00:11:16.279> when<00:11:16.440> there<00:11:16.560> is<00:11:16.639> a<00:11:16.839> milestone
greater when there is a milestone
greater when there is a milestone
somewhere<00:11:17.959> in<00:11:18.079> the
somewhere in the
somewhere in the
middle<00:11:20.120> one<00:11:20.240> of<00:11:20.360> the<00:11:20.440> great<00:11:20.600> mistakes<00:11:20.920> I<00:11:21.000> think
middle one of the great mistakes I think
middle one of the great mistakes I think
of<00:11:21.240> Economics<00:11:21.720> is<00:11:21.839> it<00:11:22.000> fails<00:11:22.360> to<00:11:22.880> understand
of Economics is it fails to understand
of Economics is it fails to understand
that<00:11:23.399> what<00:11:23.600> something<00:11:24.040> is<00:11:24.360> whether<00:11:24.560> it's
that what something is whether it's
that what something is whether it's
retirement<00:11:25.920> unemployment
retirement unemployment
retirement unemployment
cost<00:11:28.800> is<00:11:29.320> a<00:11:29.440> function<00:11:29.839> not<00:11:30.000> only<00:11:30.279> of<00:11:30.440> its
cost is a function not only of its
cost is a function not only of its
amount<00:11:31.360> but<00:11:31.519> also<00:11:31.800> its<00:11:32.279> meaning<00:11:33.279> this<00:11:33.399> is<00:11:33.519> a
amount but also its meaning this is a
amount but also its meaning this is a
toll<00:11:34.440> Crossing<00:11:35.040> in<00:11:35.480> Britain<00:11:36.240> quite<00:11:36.480> often
toll Crossing in Britain quite often
toll Crossing in Britain quite often
cues<00:11:37.760> happen<00:11:38.160> at<00:11:38.279> the<00:11:38.440> tolls<00:11:39.440> sometimes<00:11:39.639> you
cues happen at the tolls sometimes you
cues happen at the tolls sometimes you
get<00:11:39.959> very<00:11:40.160> very<00:11:40.360> severe<00:11:40.880> cues<00:11:41.320> you<00:11:41.399> could
get very very severe cues you could
get very very severe cues you could
apply<00:11:41.800> the<00:11:41.920> same<00:11:42.079> principle<00:11:42.480> actually<00:11:42.680> if<00:11:42.760> you
apply the same principle actually if you
apply the same principle actually if you
like<00:11:43.120> to<00:11:43.320> the<00:11:43.480> security<00:11:43.839> Lanes<00:11:44.160> in<00:11:44.360> airports
like to the security Lanes in airports
like to the security Lanes in airports
what<00:11:45.480> would<00:11:45.639> happen<00:11:45.839> if<00:11:45.959> you<00:11:46.040> could<00:11:46.240> actually
what would happen if you could actually
what would happen if you could actually
pay<00:11:47.120> twice<00:11:47.440> as<00:11:47.600> much<00:11:47.800> money<00:11:48.120> to<00:11:48.279> cross<00:11:48.519> the
pay twice as much money to cross the
pay twice as much money to cross the
bridge<00:11:49.240> but<00:11:49.399> go<00:11:49.560> through<00:11:49.760> a<00:11:49.839> lane<00:11:50.160> that's<00:11:50.320> an
bridge but go through a lane that's an
bridge but go through a lane that's an
express<00:11:50.880> lane<00:11:51.480> it's<00:11:51.639> not<00:11:51.760> an<00:11:51.880> unreasonable
express lane it's not an unreasonable
express lane it's not an unreasonable
thing<00:11:52.639> to<00:11:52.760> do<00:11:52.959> it's<00:11:53.079> an<00:11:53.200> economically
thing to do it's an economically
thing to do it's an economically
efficient<00:11:54.079> thing<00:11:54.200> to<00:11:54.320> do<00:11:55.000> time<00:11:55.320> means<00:11:55.680> more<00:11:55.920> to
efficient thing to do time means more to
efficient thing to do time means more to
some<00:11:56.360> people<00:11:56.560> than<00:11:56.760> others<00:11:57.360> if<00:11:57.440> you're
some people than others if you're
some people than others if you're
waiting<00:11:58.200> trying<00:11:58.399> to<00:11:58.480> get<00:11:58.600> to<00:11:58.720> a<00:11:58.839> job<00:11:59.000> in
waiting trying to get to a job in
waiting trying to get to a job in
interview<00:11:59.720> you'd<00:11:59.959> patently<00:12:00.360> pay<00:12:00.519> a<00:12:00.639> couple<00:12:00.839> of
interview you'd patently pay a couple of
interview you'd patently pay a couple of
pounds<00:12:01.320> more<00:12:01.720> to<00:12:01.880> go<00:12:02.040> through<00:12:02.320> the<00:12:02.560> um<00:12:03.040> uh<00:12:03.279> the
pounds more to go through the um uh the
pounds more to go through the um uh the
fast<00:12:03.639> lane<00:12:04.200> if<00:12:04.320> you're<00:12:04.440> on<00:12:04.560> the<00:12:04.680> way<00:12:04.800> to<00:12:05.079> visit
fast lane if you're on the way to visit
fast lane if you're on the way to visit
your<00:12:05.440> mother-in-law<00:12:06.279> you'd<00:12:06.560> probably
your mother-in-law you'd probably
your mother-in-law you'd probably
prefer<00:12:08.600> you<00:12:08.760> you'd<00:12:09.000> probably<00:12:09.320> prefer<00:12:09.600> to<00:12:09.760> stay
prefer you you'd probably prefer to stay
prefer you you'd probably prefer to stay
on<00:12:10.079> the<00:12:10.639> left<00:12:11.639> the<00:12:11.720> only<00:12:11.920> problem<00:12:12.120> is<00:12:12.279> if<00:12:12.360> you
on the left the only problem is if you
on the left the only problem is if you
introduce<00:12:12.839> this<00:12:13.040> economically<00:12:13.600> efficient
introduce this economically efficient
introduce this economically efficient
solution<00:12:15.240> people<00:12:15.560> hate<00:12:16.000> it<00:12:17.000> because<00:12:17.240> they
solution people hate it because they
solution people hate it because they
think<00:12:17.720> you're<00:12:17.959> deliberately<00:12:18.440> creating
think you're deliberately creating
think you're deliberately creating
delays<00:12:19.120> at<00:12:19.240> the<00:12:19.360> bridge<00:12:19.639> in<00:12:19.720> order<00:12:19.959> to
delays at the bridge in order to
delays at the bridge in order to
maximize<00:12:20.560> your<00:12:20.760> revenue<00:12:21.440> and<00:12:21.639> why<00:12:21.760> on<00:12:21.920> Earth
maximize your revenue and why on Earth
maximize your revenue and why on Earth
should<00:12:22.279> I<00:12:22.519> pay<00:12:22.720> to<00:12:22.880> subsidize<00:12:23.480> your
should I pay to subsidize your
should I pay to subsidize your
incompetence<00:12:25.680> on<00:12:25.800> the<00:12:25.920> other<00:12:26.120> hand<00:12:26.519> change
incompetence on the other hand change
incompetence on the other hand change
the<00:12:27.040> frame<00:12:27.440> slightly<00:12:27.839> and<00:12:28.000> create<00:12:28.360> charitable
the frame slightly and create charitable
the frame slightly and create charitable
yield<00:12:29.279> management<00:12:30.120> so<00:12:30.320> the<00:12:30.440> extra<00:12:30.760> money<00:12:31.000> you
yield management so the extra money you
yield management so the extra money you
go<00:12:31.600> goes<00:12:31.839> not<00:12:32.000> to<00:12:32.160> the<00:12:32.279> bridge<00:12:32.680> company<00:12:33.360> it
go goes not to the bridge company it
go goes not to the bridge company it
goes<00:12:33.720> to
goes to
goes to
charity<00:12:35.519> and<00:12:35.639> the<00:12:35.760> mental<00:12:36.079> willingness<00:12:36.480> to
charity and the mental willingness to
charity and the mental willingness to
pay<00:12:36.920> completely
pay completely
pay completely
changes<00:12:39.320> you<00:12:39.480> have<00:12:39.600> a<00:12:39.720> relatively
changes you have a relatively
changes you have a relatively
economically<00:12:40.680> efficient<00:12:41.120> solution<00:12:41.920> but<00:12:42.120> one
economically efficient solution but one
economically efficient solution but one
that<00:12:42.519> actually<00:12:42.800> meets<00:12:43.160> with<00:12:43.399> public<00:12:43.720> approval
that actually meets with public approval
that actually meets with public approval
and<00:12:44.440> even<00:12:44.639> a<00:12:44.800> small<00:12:45.000> degree<00:12:45.279> of<00:12:45.480> affection
and even a small degree of affection
and even a small degree of affection
rather<00:12:46.720> than<00:12:46.880> being<00:12:47.120> seen<00:12:47.399> as
rather than being seen as
rather than being seen as
bastardy<00:12:49.800> so<00:12:50.399> where<00:12:50.720> economists<00:12:51.279> make<00:12:51.440> the
bastardy so where economists make the
bastardy so where economists make the
fundamental<00:12:52.160> mistake<00:12:52.519> is<00:12:52.680> they<00:12:52.839> think<00:12:53.040> that
fundamental mistake is they think that
fundamental mistake is they think that
money<00:12:53.680> is
money is
money is
money<00:12:56.199> actually<00:12:57.199> my<00:12:57.519> pain<00:12:57.959> experienced<00:12:58.480> in
money actually my pain experienced in
money actually my pain experienced in
paying
paying
paying
is<00:13:00.079> not<00:13:00.320> just<00:13:00.560> proportionate<00:13:01.000> to<00:13:01.160> the<00:13:01.320> amount
is not just proportionate to the amount
is not just proportionate to the amount
but<00:13:02.279> where<00:13:02.519> I<00:13:02.639> think<00:13:02.920> that<00:13:03.040> money<00:13:03.320> is<00:13:03.560> going
but where I think that money is going
but where I think that money is going
and<00:13:04.680> I<00:13:04.760> think<00:13:05.199> understanding<00:13:05.440> that<00:13:05.600> could
and I think understanding that could
and I think understanding that could
revolutionize<00:13:06.560> tax<00:13:06.880> policy<00:13:07.519> it<00:13:07.600> could
revolutionize tax policy it could
revolutionize tax policy it could
revolutionize<00:13:08.440> the<00:13:08.600> Public<00:13:08.880> Services<00:13:09.680> it
revolutionize the Public Services it
revolutionize the Public Services it
could<00:13:09.959> actually<00:13:10.240> change<00:13:10.600> things<00:13:10.880> quite
could actually change things quite
could actually change things quite
significantly<00:13:13.040> here's<00:13:13.199> a<00:13:13.360> guy<00:13:13.480> you<00:13:13.600> all<00:13:13.760> need
significantly here's a guy you all need
significantly here's a guy you all need
to<00:13:14.079> study<00:13:15.000> he's<00:13:15.199> an<00:13:15.279> Austrian<00:13:15.680> School
to study he's an Austrian School
to study he's an Austrian School
Economist<00:13:16.880> who<00:13:17.199> was<00:13:17.800> first<00:13:18.199> active<00:13:18.680> in<00:13:18.839> the
Economist who was first active in the
Economist who was first active in the
first<00:13:19.279> half<00:13:19.480> of<00:13:19.639> the<00:13:20.240> 20th<00:13:20.600> century<00:13:20.920> in<00:13:21.040> Vienna
first half of the 20th century in Vienna
first half of the 20th century in Vienna
what<00:13:21.720> was<00:13:21.839> interesting<00:13:22.160> about<00:13:22.360> the<00:13:22.560> Austrian
what was interesting about the Austrian
what was interesting about the Austrian
School<00:13:23.320> is<00:13:23.519> they<00:13:23.680> actually<00:13:24.399> grew<00:13:24.680> up
School is they actually grew up
School is they actually grew up
alongside<00:13:25.920> Freud<00:13:26.880> and<00:13:26.959> so<00:13:27.120> they're
alongside Freud and so they're
alongside Freud and so they're
predominantly<00:13:28.040> interested<00:13:28.399> in<00:13:28.720> Psych<00:13:29.199> ology
predominantly interested in Psych ology
predominantly interested in Psych ology
they<00:13:29.639> believed<00:13:30.360> that<00:13:30.720> um<00:13:31.720> uh<00:13:31.839> there<00:13:31.920> was<00:13:32.079> a
they believed that um uh there was a
they believed that um uh there was a
discipline<00:13:32.680> called<00:13:32.920> praxiology<00:13:33.800> which<00:13:33.920> is<00:13:34.000> a
discipline called praxiology which is a
discipline called praxiology which is a
prior<00:13:34.639> discipline<00:13:35.079> to<00:13:35.240> the<00:13:35.360> study<00:13:35.600> of
prior discipline to the study of
prior discipline to the study of
Economics<00:13:36.480> praxiology<00:13:37.079> is<00:13:37.240> the<00:13:37.360> study<00:13:37.680> of
Economics praxiology is the study of
Economics praxiology is the study of
human<00:13:38.440> Choice<00:13:39.040> action<00:13:39.800> and<00:13:40.160> uh<00:13:40.320> decision
human Choice action and uh decision
human Choice action and uh decision
making<00:13:42.000> I<00:13:42.079> think<00:13:42.240> they're<00:13:42.600> right<00:13:43.240> I<00:13:43.320> think<00:13:43.440> the
making I think they're right I think the
making I think they're right I think the
danger<00:13:43.880> we<00:13:44.040> have<00:13:44.160> in<00:13:44.240> today's<00:13:44.600> world<00:13:44.839> is<00:13:45.000> we
danger we have in today's world is we
danger we have in today's world is we
have<00:13:45.680> the<00:13:45.800> study<00:13:46.040> of<00:13:46.199> Economics<00:13:46.800> considers
have the study of Economics considers
have the study of Economics considers
itself<00:13:47.600> to<00:13:47.720> be<00:13:47.839> a<00:13:48.079> prior<00:13:48.880> uh<00:13:49.000> discipline<00:13:49.600> to
itself to be a prior uh discipline to
itself to be a prior uh discipline to
the<00:13:49.880> study<00:13:50.160> of<00:13:50.279> human<00:13:50.560> psychology<00:13:51.160> but<00:13:51.279> as
the study of human psychology but as
the study of human psychology but as
Charlie<00:13:51.639> Munga<00:13:52.000> says<00:13:52.440> if<00:13:52.600> economics<00:13:53.120> isn't
Charlie Munga says if economics isn't
Charlie Munga says if economics isn't
behavioral<00:13:54.120> I<00:13:54.240> don't<00:13:54.399> know<00:13:54.560> what<00:13:54.720> the<00:13:54.839> hell
behavioral I don't know what the hell
behavioral I don't know what the hell
is<00:13:57.040> Von<00:13:57.320> M's
is Von M's
is Von M's
inly<00:13:59.440> believes<00:13:59.839> economics<00:14:00.360> is<00:14:00.519> just<00:14:00.639> a<00:14:00.839> subset
inly believes economics is just a subset
inly believes economics is just a subset
of<00:14:02.079> psychology<00:14:03.079> I<00:14:03.160> think<00:14:03.279> he<00:14:03.600> refers<00:14:03.920> to
of psychology I think he refers to
of psychology I think he refers to
economics<00:14:04.600> as<00:14:04.720> the<00:14:04.839> study<00:14:05.079> of<00:14:05.240> human
economics as the study of human
economics as the study of human
praxiology<00:14:06.240> under<00:14:06.680> conditions<00:14:06.920> of
praxiology under conditions of
praxiology under conditions of
scarcity<00:14:09.000> but<00:14:09.120> Von<00:14:09.360> mes<00:14:09.839> among<00:14:10.199> many<00:14:10.440> other
scarcity but Von mes among many other
scarcity but Von mes among many other
things<00:14:12.240> I<00:14:12.320> think<00:14:13.240> uses<00:14:13.800> an<00:14:13.959> analogy<00:14:14.440> which<00:14:14.560> is
things I think uses an analogy which is
things I think uses an analogy which is
probably<00:14:15.079> the<00:14:15.199> best<00:14:15.480> justification<00:14:16.120> and
probably the best justification and
probably the best justification and
explanation<00:14:16.959> for<00:14:17.680> the<00:14:17.839> value<00:14:18.079> of<00:14:18.320> marketing
explanation for the value of marketing
explanation for the value of marketing
the<00:14:19.079> value<00:14:19.320> of<00:14:19.519> perceived<00:14:20.120> value<00:14:21.079> and<00:14:21.199> the
the value of perceived value and the
the value of perceived value and the
fact<00:14:21.519> that<00:14:21.639> we<00:14:21.720> should<00:14:21.920> actually<00:14:22.160> treat<00:14:22.440> it<00:14:22.600> as
fact that we should actually treat it as
fact that we should actually treat it as
being<00:14:23.160> absolutely<00:14:23.720> equivalent<00:14:24.160> to<00:14:24.320> any<00:14:24.519> other
being absolutely equivalent to any other
being absolutely equivalent to any other
kind<00:14:24.959> of<00:14:25.320> value<00:14:26.320> we<00:14:26.440> tend<00:14:26.720> all<00:14:26.839> of<00:14:26.959> us<00:14:27.120> even
kind of value we tend all of us even
kind of value we tend all of us even
those<00:14:27.440> of<00:14:27.560> us<00:14:27.639> who<00:14:27.759> work<00:14:27.920> in<00:14:28.040> marketing<00:14:28.399> to
those of us who work in marketing to
those of us who work in marketing to
think<00:14:28.639> of<00:14:28.759> value<00:14:29.160> in<00:14:29.279> two<00:14:29.440> ways<00:14:29.720> there's<00:14:29.920> the
think of value in two ways there's the
think of value in two ways there's the
real<00:14:30.399> value<00:14:30.759> which<00:14:30.880> is<00:14:31.000> when<00:14:31.120> you<00:14:31.240> make
real value which is when you make
real value which is when you make
something<00:14:31.680> in<00:14:31.759> a<00:14:31.920> factory<00:14:32.199> or<00:14:32.360> provide<00:14:32.600> a
something in a factory or provide a
something in a factory or provide a
service<00:14:33.560> and<00:14:33.639> then<00:14:33.759> there's<00:14:33.880> a<00:14:33.959> kind<00:14:34.079> of
service and then there's a kind of
service and then there's a kind of
dubious<00:14:34.759> value<00:14:35.160> which<00:14:35.279> you<00:14:35.440> create<00:14:35.759> by
dubious value which you create by
dubious value which you create by
changing<00:14:36.279> the<00:14:36.399> way<00:14:36.560> people<00:14:36.759> look<00:14:36.880> at<00:14:37.199> things
changing the way people look at things
changing the way people look at things
Von<00:14:38.440> M<00:14:38.680> has<00:14:38.920> completely<00:14:39.480> rejected<00:14:39.959> this
Von M has completely rejected this
Von M has completely rejected this
distinction<00:14:40.639> and<00:14:40.759> he<00:14:40.839> used<00:14:41.120> this<00:14:41.399> following
distinction and he used this following
distinction and he used this following
analogy<00:14:42.120> he<00:14:42.480> said<00:14:43.480> he<00:14:43.639> referred<00:14:44.000> actually<00:14:44.160> to
analogy he said he referred actually to
analogy he said he referred actually to
some<00:14:44.800> strange<00:14:45.480> uh<00:14:45.600> economists<00:14:46.040> called<00:14:46.240> the
some strange uh economists called the
some strange uh economists called the
French
French
French
physiocrats<00:14:48.839> who<00:14:48.959> believe<00:14:49.279> that<00:14:49.519> only<00:14:49.759> true
physiocrats who believe that only true
physiocrats who believe that only true
value<00:14:50.279> was<00:14:50.440> what<00:14:50.560> you<00:14:50.720> extracted<00:14:51.160> from<00:14:51.279> the
value was what you extracted from the
value was what you extracted from the
land<00:14:51.759> so<00:14:51.920> if<00:14:52.000> you<00:14:52.079> were<00:14:52.240> a<00:14:52.360> Shepherd<00:14:52.759> or<00:14:52.880> a
land so if you were a Shepherd or a
land so if you were a Shepherd or a
quarryman<00:14:53.600> or<00:14:53.759> a<00:14:54.040> farmer<00:14:54.680> you<00:14:54.839> created<00:14:55.320> True
quarryman or a farmer you created True
quarryman or a farmer you created True
Value<00:14:56.440> if<00:14:56.800> however<00:14:57.040> you<00:14:57.600> bought<00:14:57.880> some<00:14:58.079> wool
Value if however you bought some wool
Value if however you bought some wool
from<00:14:58.519> the<00:14:58.600> shepherd<00:14:59.399> and<00:14:59.639> charged<00:15:00.000> a<00:15:00.160> premium
from the shepherd and charged a premium
from the shepherd and charged a premium
for<00:15:00.680> converting<00:15:01.079> it<00:15:01.240> into<00:15:01.480> a<00:15:01.720> hat<00:15:02.240> you<00:15:02.360> weren't
for converting it into a hat you weren't
for converting it into a hat you weren't
actually<00:15:02.959> creating<00:15:03.680> value<00:15:04.120> you<00:15:04.199> were
actually creating value you were
actually creating value you were
exploiting<00:15:04.920> the
exploiting the
exploiting the
shepherd<00:15:06.759> now<00:15:07.000> Von<00:15:07.199> M<00:15:07.480> says<00:15:07.959> that<00:15:08.040> modern
shepherd now Von M says that modern
shepherd now Von M says that modern
economists<00:15:08.759> make<00:15:09.000> exactly<00:15:09.360> the<00:15:09.480> same<00:15:09.680> mistake
economists make exactly the same mistake
economists make exactly the same mistake
with<00:15:10.680> regard<00:15:11.000> to<00:15:11.199> advertising<00:15:11.680> and<00:15:11.959> marketing
with regard to advertising and marketing
with regard to advertising and marketing
he<00:15:13.079> says<00:15:13.360> if<00:15:13.480> you<00:15:13.639> run<00:15:13.839> a<00:15:14.040> restaurant<00:15:14.600> there<00:15:14.720> is
he says if you run a restaurant there is
he says if you run a restaurant there is
no<00:15:15.240> healthy<00:15:15.639> distinction<00:15:16.160> to<00:15:16.279> be<00:15:16.519> made
no healthy distinction to be made
no healthy distinction to be made
between<00:15:17.399> the<00:15:17.519> value<00:15:17.800> you<00:15:17.959> create<00:15:18.320> by<00:15:18.519> cooking
between the value you create by cooking
between the value you create by cooking
the<00:15:18.959> food<00:15:19.600> and<00:15:19.720> the<00:15:19.839> value<00:15:20.079> you<00:15:20.199> create<00:15:20.519> by
the food and the value you create by
the food and the value you create by
sweeping<00:15:21.000> the<00:15:21.480> floor<00:15:22.480> one<00:15:22.639> of<00:15:22.759> them<00:15:23.000> creates
sweeping the floor one of them creates
sweeping the floor one of them creates
perhaps<00:15:23.680> the<00:15:23.880> primary<00:15:24.320> product<00:15:24.680> the<00:15:24.759> thing<00:15:24.959> we
perhaps the primary product the thing we
perhaps the primary product the thing we
think<00:15:25.320> we're<00:15:25.560> paying<00:15:25.839> for<00:15:26.360> the<00:15:26.480> other<00:15:26.639> one
think we're paying for the other one
think we're paying for the other one
creates<00:15:27.160> a<00:15:27.399> context<00:15:27.959> within<00:15:28.319> which<00:15:28.759> we<00:15:29.040> can
creates a context within which we can
creates a context within which we can
enjoy<00:15:29.720> and<00:15:29.920> appreciate<00:15:30.440> that<00:15:30.680> product<00:15:31.279> and
enjoy and appreciate that product and
enjoy and appreciate that product and
the<00:15:31.560> idea<00:15:31.880> that<00:15:32.040> one<00:15:32.199> of<00:15:32.360> them<00:15:32.519> should
the idea that one of them should
the idea that one of them should
actually<00:15:33.040> have<00:15:33.240> priority<00:15:33.680> over<00:15:33.880> the<00:15:34.000> other<00:15:34.440> is
actually have priority over the other is
actually have priority over the other is
fundamentally<00:15:35.240> wrong<00:15:36.240> try<00:15:36.480> this<00:15:36.639> quick
fundamentally wrong try this quick
fundamentally wrong try this quick
thought<00:15:37.120> experiment<00:15:37.560> imagine<00:15:37.800> a<00:15:37.959> restaurant
thought experiment imagine a restaurant
thought experiment imagine a restaurant
that<00:15:38.440> serves<00:15:38.720> mishan<00:15:39.639> food<00:15:40.360> but<00:15:40.639> actually
that serves mishan food but actually
that serves mishan food but actually
where<00:15:41.519> the<00:15:41.680> restaurant<00:15:42.079> smells<00:15:42.360> of<00:15:42.519> sewage
where the restaurant smells of sewage
where the restaurant smells of sewage
and<00:15:43.720> there's<00:15:43.959> human<00:15:44.319> feces<00:15:44.759> on<00:15:44.959> the
and there's human feces on the
and there's human feces on the
floor<00:15:46.920> the<00:15:47.120> best<00:15:47.319> thing<00:15:47.480> you<00:15:47.600> can<00:15:47.759> do<00:15:48.000> there<00:15:48.120> to
floor the best thing you can do there to
floor the best thing you can do there to
create<00:15:48.639> value<00:15:49.360> is<00:15:49.600> not<00:15:49.920> actually<00:15:50.560> to<00:15:50.759> improve
create value is not actually to improve
create value is not actually to improve
the<00:15:51.199> food<00:15:51.519> still<00:15:51.800> further<00:15:52.399> it's<00:15:52.560> to<00:15:52.680> get<00:15:52.839> rid
the food still further it's to get rid
the food still further it's to get rid
of<00:15:53.120> the<00:15:53.240> smell<00:15:53.800> and<00:15:53.959> clean<00:15:54.199> up<00:15:54.360> the
floor<00:15:57.639> and<00:15:58.040> it's<00:15:58.279> vital<00:15:58.600> we<00:15:59.160> understand<00:15:59.399> this
floor and it's vital we understand this
floor and it's vital we understand this
if<00:16:00.240> that<00:16:00.360> seems<00:16:00.600> like<00:16:00.720> a<00:16:00.800> sort<00:16:00.920> of<00:16:01.000> strange
if that seems like a sort of strange
if that seems like a sort of strange
obst<00:16:01.759> thing<00:16:01.920> in<00:16:02.040> the<00:16:02.199> UK<00:16:02.560> the<00:16:02.759> post
obst thing in the UK the post
obst thing in the UK the post
office<00:16:04.639> had<00:16:04.759> a<00:16:05.000> 98%<00:16:06.000> success<00:16:06.399> rate<00:16:06.560> at
office had a 98% success rate at
office had a 98% success rate at
delivering<00:16:07.120> first<00:16:07.440> class<00:16:07.639> mail<00:16:07.959> the<00:16:08.079> next<00:16:08.480> day
delivering first class mail the next day
delivering first class mail the next day
they<00:16:09.600> decided<00:16:10.000> this<00:16:10.120> wasn't<00:16:10.399> good<00:16:10.560> enough<00:16:10.759> and
they decided this wasn't good enough and
they decided this wasn't good enough and
they<00:16:10.959> wanted<00:16:11.199> to<00:16:11.279> get<00:16:11.399> it<00:16:11.519> up<00:16:11.639> to
they wanted to get it up to
they wanted to get it up to
99<00:16:14.519> the<00:16:14.639> effort<00:16:15.000> to<00:16:15.160> do<00:16:15.399> that<00:16:15.680> almost<00:16:16.120> broke
99 the effort to do that almost broke
99 the effort to do that almost broke
the
the
the
organization<00:16:18.839> if<00:16:19.000> at<00:16:19.120> the<00:16:19.240> same<00:16:19.440> time<00:16:19.560> you'd
organization if at the same time you'd
organization if at the same time you'd
gone<00:16:19.959> and<00:16:20.079> asked<00:16:20.360> people<00:16:20.680> what<00:16:20.839> percentage<00:16:21.240> of
gone and asked people what percentage of
gone and asked people what percentage of
first<00:16:21.639> class<00:16:21.839> mail<00:16:22.079> arrives<00:16:22.399> the<00:16:22.519> next<00:16:22.720> day
first class mail arrives the next day
first class mail arrives the next day
the<00:16:23.360> average<00:16:23.680> answer<00:16:24.040> would<00:16:24.160> have<00:16:24.279> been<00:16:24.839> 50<00:16:25.199> or
the average answer would have been 50 or
the average answer would have been 50 or
the<00:16:25.480> modal<00:16:25.800> answer<00:16:26.160> would<00:16:26.240> have<00:16:26.360> been<00:16:26.519> 50<00:16:26.800> to
the modal answer would have been 50 to
the modal answer would have been 50 to
60%<00:16:28.600> now<00:16:28.759> if<00:16:28.920> if<00:16:29.000> your<00:16:29.160> perception's<00:16:29.759> much
60% now if if your perception's much
60% now if if your perception's much
worse<00:16:30.279> than<00:16:30.440> your<00:16:30.600> reality<00:16:31.240> what<00:16:31.360> on<00:16:31.519> Earth
worse than your reality what on Earth
worse than your reality what on Earth
are<00:16:31.839> you<00:16:32.000> doing<00:16:32.839> trying<00:16:33.079> to<00:16:33.240> change<00:16:33.519> the
are you doing trying to change the
are you doing trying to change the
reality<00:16:34.480> that's<00:16:34.639> like<00:16:34.800> trying<00:16:35.000> to<00:16:35.199> improve
reality that's like trying to improve
reality that's like trying to improve
the<00:16:35.759> food<00:16:36.319> in<00:16:36.440> a<00:16:36.560> restaurant<00:16:37.120> that
the food in a restaurant that
the food in a restaurant that
stinks<00:16:39.639> what<00:16:39.800> you<00:16:39.920> need<00:16:40.120> to<00:16:40.279> do<00:16:40.680> is<00:16:40.880> first<00:16:41.040> of
stinks what you need to do is first of
stinks what you need to do is first of
all<00:16:41.360> tell<00:16:41.639> people<00:16:41.920> that<00:16:42.319> 98%<00:16:43.319> uh<00:16:43.399> of<00:16:43.519> male<00:16:43.800> gets
all tell people that 98% uh of male gets
all tell people that 98% uh of male gets
there<00:16:44.199> the<00:16:44.319> first<00:16:44.959> the<00:16:45.079> next<00:16:45.240> day<00:16:45.399> first<00:16:45.680> class
there the first the next day first class
there the first the next day first class
male<00:16:46.959> that's<00:16:47.279> pretty<00:16:47.680> good<00:16:48.519> I<00:16:48.600> would<00:16:48.759> argue<00:16:49.040> in
male that's pretty good I would argue in
male that's pretty good I would argue in
Britain<00:16:49.399> there's<00:16:49.519> a<00:16:49.639> much<00:16:49.839> better<00:16:50.079> frame<00:16:50.319> of
Britain there's a much better frame of
Britain there's a much better frame of
reference<00:16:51.440> which<00:16:51.560> is<00:16:51.680> to<00:16:51.839> tell<00:16:52.040> people<00:16:52.319> that
reference which is to tell people that
reference which is to tell people that
more<00:16:52.880> first<00:16:53.160> class<00:16:53.360> male<00:16:53.600> arrives<00:16:53.920> the<00:16:54.040> next
more first class male arrives the next
more first class male arrives the next
day<00:16:54.360> in<00:16:54.480> the<00:16:54.600> UK<00:16:55.440> than<00:16:55.560> in<00:16:55.839> Germany<00:16:56.839> because
day in the UK than in Germany because
day in the UK than in Germany because
generally<00:16:57.360> in<00:16:57.480> Britain<00:16:57.759> if<00:16:57.839> you<00:16:57.959> want<00:16:58.079> to<00:16:58.160> make
generally in Britain if you want to make
generally in Britain if you want to make
us<00:16:58.440> happy<00:16:58.680> about<00:16:59.079> something<00:16:59.360> just<00:16:59.480> tell<00:16:59.639> us<00:16:59.759> we
us happy about something just tell us we
us happy about something just tell us we
do<00:17:00.000> it<00:17:00.160> better<00:17:00.360> than<00:17:00.480> the
do it better than the
do it better than the
Germans
Germans
Germans
um<00:17:06.360> choose<00:17:06.679> your<00:17:06.919> frame<00:17:07.160> of<00:17:07.400> reference<00:17:08.319> and
um choose your frame of reference and
um choose your frame of reference and
the<00:17:08.600> perceived<00:17:09.120> value<00:17:09.600> and<00:17:10.000> therefore<00:17:10.520> the
the perceived value and therefore the
the perceived value and therefore the
actual<00:17:11.160> value<00:17:11.640> is<00:17:11.839> completely<00:17:12.199> transformed
actual value is completely transformed
actual value is completely transformed
has<00:17:13.199> to<00:17:13.280> be<00:17:13.400> said<00:17:13.600> actually<00:17:13.760> of<00:17:13.919> the<00:17:14.039> Germans
has to be said actually of the Germans
has to be said actually of the Germans
that<00:17:14.679> um<00:17:15.039> the<00:17:15.160> Germans<00:17:15.439> and<00:17:15.559> the<00:17:15.640> French<00:17:15.839> are
that um the Germans and the French are
that um the Germans and the French are
doing<00:17:16.120> a<00:17:16.240> brilliant<00:17:16.679> job<00:17:16.919> of<00:17:17.199> creating<00:17:17.559> a
doing a brilliant job of creating a
doing a brilliant job of creating a
United<00:17:18.199> Europe<00:17:18.919> uh<00:17:19.039> the<00:17:19.120> only<00:17:19.240> thing<00:17:19.360> they
United Europe uh the only thing they
United Europe uh the only thing they
didn't<00:17:19.720> expect<00:17:20.000> is<00:17:20.160> they're<00:17:20.520> uniting<00:17:21.000> Europe
didn't expect is they're uniting Europe
didn't expect is they're uniting Europe
through<00:17:21.480> a<00:17:21.600> shared<00:17:22.039> mild<00:17:22.439> hatred<00:17:22.799> of<00:17:22.959> the
through a shared mild hatred of the
through a shared mild hatred of the
French<00:17:23.280> and<00:17:23.480> Germans<00:17:24.480> um<00:17:24.959> but<00:17:25.120> but<00:17:25.240> I'm
French and Germans um but but I'm
French and Germans um but but I'm
British<00:17:25.799> that's<00:17:25.959> the<00:17:26.039> way<00:17:26.160> we<00:17:26.319> like<00:17:26.559> it<00:17:27.199> um
British that's the way we like it um
British that's the way we like it um
what<00:17:29.520> you'll<00:17:29.720> also<00:17:29.960> notice<00:17:30.360> is<00:17:30.440> that<00:17:30.600> in<00:17:30.720> any
what you'll also notice is that in any
what you'll also notice is that in any
case<00:17:31.039> our<00:17:31.240> perception<00:17:31.640> is<00:17:31.760> leaky<00:17:32.280> we<00:17:32.440> can't
case our perception is leaky we can't
case our perception is leaky we can't
tell<00:17:32.960> the<00:17:33.120> difference<00:17:33.480> between<00:17:33.760> the<00:17:33.840> quality
tell the difference between the quality
tell the difference between the quality
of<00:17:34.280> the<00:17:34.559> food<00:17:35.559> and<00:17:35.760> the<00:17:35.880> environment<00:17:36.320> in<00:17:36.440> which
of the food and the environment in which
of the food and the environment in which
we<00:17:36.720> consume<00:17:37.080> it<00:17:37.440> all<00:17:37.600> of<00:17:37.679> you<00:17:37.799> will<00:17:37.919> have<00:17:38.039> seen
we consume it all of you will have seen
we consume it all of you will have seen
this<00:17:38.400> phenomenon<00:17:38.919> if<00:17:39.000> you<00:17:39.160> have<00:17:39.280> your<00:17:39.520> car
this phenomenon if you have your car
this phenomenon if you have your car
washed<00:17:40.200> or<00:17:40.360> valeted<00:17:41.280> when<00:17:41.400> you<00:17:41.559> drive<00:17:41.880> away
washed or valeted when you drive away
washed or valeted when you drive away
your<00:17:42.640> car<00:17:42.840> feels<00:17:43.280> as<00:17:43.400> if<00:17:43.520> it<00:17:43.679> drives
your car feels as if it drives
your car feels as if it drives
better<00:17:46.280> and<00:17:46.360> the<00:17:46.480> reason<00:17:46.679> for<00:17:46.840> this<00:17:47.120> unless<00:17:47.480> my
better and the reason for this unless my
better and the reason for this unless my
car<00:17:47.960> valot<00:17:48.400> mysteriously<00:17:49.000> is<00:17:49.160> changing<00:17:49.559> the
car valot mysteriously is changing the
car valot mysteriously is changing the
oil<00:17:49.960> and<00:17:50.280> Performing<00:17:50.720> work<00:17:51.039> which<00:17:51.160> I'm<00:17:51.280> not
oil and Performing work which I'm not
oil and Performing work which I'm not
paying<00:17:51.760> him<00:17:51.919> for<00:17:52.080> and<00:17:52.240> I'm<00:17:52.640> unaware<00:17:53.000> of<00:17:53.440> is
paying him for and I'm unaware of is
paying him for and I'm unaware of is
because<00:17:53.880> perception<00:17:54.280> is<00:17:54.400> in<00:17:54.520> any<00:17:54.720> case<00:17:54.960> leaky
because perception is in any case leaky
because perception is in any case leaky
analgesics<00:17:56.679> that<00:17:56.760> are<00:17:56.919> branded<00:17:57.440> are<00:17:57.640> more
analgesics that are branded are more
analgesics that are branded are more
effective<00:17:58.600> at<00:17:58.919> reducing<00:17:59.440> pain<00:17:59.760> than
effective at reducing pain than
effective at reducing pain than
analgesics<00:18:00.559> that<00:18:00.679> are<00:18:00.799> not<00:18:00.960> branded<00:18:01.480> I<00:18:01.559> don't
analgesics that are not branded I don't
analgesics that are not branded I don't
just<00:18:01.840> mean<00:18:02.039> through<00:18:02.360> reported<00:18:02.960> pain
just mean through reported pain
just mean through reported pain
reduction<00:18:03.960> actual<00:18:04.360> measured<00:18:04.840> pain<00:18:05.120> reduction
reduction actual measured pain reduction
reduction actual measured pain reduction
and<00:18:06.080> so
and so
and so
perception<00:18:08.440> actually<00:18:08.960> is<00:18:09.120> leaky<00:18:09.720> in<00:18:09.919> any<00:18:10.240> case
perception actually is leaky in any case
perception actually is leaky in any case
so<00:18:11.400> if<00:18:11.480> you<00:18:11.559> do<00:18:11.720> something<00:18:11.960> that's
so if you do something that's
so if you do something that's
perceptually<00:18:12.799> bad<00:18:13.039> in<00:18:13.159> one<00:18:13.440> respect<00:18:13.880> you<00:18:14.000> can
perceptually bad in one respect you can
perceptually bad in one respect you can
damage<00:18:14.520> the<00:18:14.640> other<00:18:15.640> thank<00:18:15.760> you<00:18:15.919> very<00:18:16.120> much
Rory Sutherland, TED, TEDx, TEDxAthens, happiness, perspective, psychology, TED-Ed, TED, Ed, TEDEducation
