Check your Pulse #14

Advertising adds value to a product by changing our perception of it. An example I love that is not mentioned in the book: for years, few people bought “death insurance.” Then some genius changed the name to life insurance and grew the industry by many billions of dollars. After all, life insurance sounds so much better than death insurance.

Logic requires that people find universal laws, but outside of scientific fields and once human psychology has a role to play, it is perfectly possible for behavior to become contradictory. A tax rise can cause you to work less because the returns of your labor are lower, or work harder to maintain your present level of disposable wealth. There are... See more