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1 They believed that there was a discipline called praxeology, which is a prior discipline to the study of economics. Praxeology is the study of human choice, action and decision making. I think they're right. I think the danger we have in today's world is we have the study of economics considers itself to be a prior discipline to the study of human psychology. But as Charlie Munger says, "If economics isn't behavioral, I don't know what the hell is." Von Mises, interestingly, believes economics is just a subset of psychology. I think he just refers to economics as "the study of human praxeology under conditions of scarcity." But von Mises, among many other things, I think uses an analogy which is probably the best justification and explanation for the value of marketing, the value of perceived value and the fact that we should actually treat it as being absolutely equivalent to any other kind of value. We tend to, all of us -- even those of us who work in marketing -- to think of value in two ways. There's the real value, which is when you make something in a factory and provide a service, and then there's a kind of dubious value, which you create by changing the way people look at things. Von Mises completely rejected this distinction. And he used this following analogy. He referred actually to strange economist called the French Physiocrats, who believed that the only true value was what you extracted from the land. So if you're a shepherd or a quarryman or a farmer, you created true value. If however, you bought some wool from the shepherd and charged a premium for converting it into a hat, you weren't actually creating value, you were exploiting the shepherd. Now von Mises said that modern economists make exactly the same mistake with regard to advertising and marketing. He says, if you run a restaurant, there is no healthy distinction to be made between the value you create by cooking the food and the value you create by sweeping the floor. One of them creates, perhaps, the primary product -- the thing we think we're paying for -- the other one creates a context within which we can enjoy and appreciate that product. And the idea that one of them should actually have priority over the other is fundamentally wrong. Try this quick thought experiment. Imagine a restaurant that serves Michelin-starred food, but actually where the restaurant smells of sewage and there's human feces on the floor. The best thing you can do there to create value is not actually to improve the food still further, it's to get rid of the smell and clean up the floor. And it's vital we understand this. If that seems like some strange, abstruse thing, in the U.K., the post office had a 98 percent success rate at delivering first-class mail the next day. They decided this wasn't good enough and they wanted to get it up to 99. The effort to do that almost broke the organization. If at the same time you'd gone and asked people, "What percentage of first-class mail arrives the next day?" the average answer, or the modal answer would have been 50 to 60 percent. Now if your perception is much worse than your reality, what on earth are you doing trying to change the reality? That's like trying to improve the food in a restaurant that stinks. What you need to do is first of all tell people that 98 percent of mail gets there the next day, first-class mail. That's pretty good. I would argue, in Britain there's a much better frame of reference, 【TED】Rory Sutherland: 看法決定一切 (Perspective is everything)
2 What you have here is an electronic cigarette. It's something that's, since it was invented a year or two ago, has given me untold happiness. (Laughter) A little bit of it, I think, is the nicotine, but there's something much bigger than that. Which is ever since, in the U.K., they banned smoking in public places, I've never enjoyed a drinks party ever again. (Laughter) And the reason, I only worked out just the other day, which is when you go to a drinks party and you stand up and you hold a glass of red wine and you talk endlessly to people, you don't actually want to spend all the time talking. It's really, really tiring. Sometimes you just want to stand there silently, alone with your thoughts. Sometimes you just want to stand in the corner and stare out of the window. Now the problem is, when you can't smoke, if you stand and stare out of the window on your own, you're an antisocial, friendless idiot. (Laughter) If you stand and stare out of the window on your own with a cigarette, you're a fucking philosopher. (Laughter) (Applause) So the power of reframing things cannot be overstated. What we have is exactly the same thing, the same activity, but one of them makes you feel great and the other one, with just a small change of posture, makes you feel terrible. And I think one of the problems with classical economics is it's absolutely preoccupied with reality. And reality isn't a particularly good guide to human happiness. Why, for example, are pensioners much happier than the young unemployed? Both of them, after all, are in exactly the same stage of life. 【TED】Rory Sutherland: 看法決定一切 (Perspective is everything)
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