[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.10,0:00:02.63,Default,,0000,0000,0000,,What you have here
Dialogue: 0,0:00:02.65,0:00:05.92,Default,,0000,0000,0000,,is an electronic cigarette.
Dialogue: 0,0:00:06.84,0:00:10.06,Default,,0000,0000,0000,,It's something that, since it was\Ninvented a year or two ago,
Dialogue: 0,0:00:10.08,0:00:11.55,Default,,0000,0000,0000,,has given me untold happiness.
Dialogue: 0,0:00:11.58,0:00:12.76,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:00:12.78,0:00:15.22,Default,,0000,0000,0000,,A little bit of it,\NI think, is the nicotine,
Dialogue: 0,0:00:15.24,0:00:17.45,Default,,0000,0000,0000,,but there's something\Nmuch bigger than that;
Dialogue: 0,0:00:17.47,0:00:23.04,Default,,0000,0000,0000,,which is, ever since, in the UK,\Nthey banned smoking in public places,
Dialogue: 0,0:00:23.06,0:00:25.88,Default,,0000,0000,0000,,I've never enjoyed\Na drinks party ever again.
Dialogue: 0,0:00:25.91,0:00:27.77,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:00:27.79,0:00:30.89,Default,,0000,0000,0000,,And the reason, I only worked out\Njust the other day,
Dialogue: 0,0:00:30.91,0:00:33.58,Default,,0000,0000,0000,,which is: when you go\Nto a drinks party and you stand up
Dialogue: 0,0:00:33.60,0:00:36.56,Default,,0000,0000,0000,,and hold a glass of red wine\Nand you talk endlessly to people,
Dialogue: 0,0:00:36.59,0:00:39.16,Default,,0000,0000,0000,,you don't actually want to spend\Nall the time talking.
Dialogue: 0,0:00:39.18,0:00:40.66,Default,,0000,0000,0000,,It's really, really tiring.
Dialogue: 0,0:00:40.68,0:00:44.69,Default,,0000,0000,0000,,Sometimes you just want to stand there\Nsilently, alone with your thoughts.
Dialogue: 0,0:00:44.72,0:00:48.72,Default,,0000,0000,0000,,Sometimes you just want to stand\Nin the corner and stare out of the window.
Dialogue: 0,0:00:49.65,0:00:52.82,Default,,0000,0000,0000,,Now the problem is, when you can't smoke,
Dialogue: 0,0:00:52.84,0:00:56.50,Default,,0000,0000,0000,,if you stand and stare\Nout of the window on your own,
Dialogue: 0,0:00:56.52,0:00:58.74,Default,,0000,0000,0000,,you're an antisocial, friendless idiot.
Dialogue: 0,0:00:58.77,0:01:01.08,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:01.10,0:01:04.50,Default,,0000,0000,0000,,If you stand and stare out of the window\Non your own with a cigarette,
Dialogue: 0,0:01:04.53,0:01:06.28,Default,,0000,0000,0000,,you're a fucking philosopher.
Dialogue: 0,0:01:06.31,0:01:09.11,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:09.13,0:01:14.78,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:01:14.81,0:01:18.25,Default,,0000,0000,0000,,So the power of reframing things
Dialogue: 0,0:01:19.72,0:01:22.17,Default,,0000,0000,0000,,cannot be overstated.
Dialogue: 0,0:01:22.20,0:01:25.57,Default,,0000,0000,0000,,What we have is exactly\Nthe same thing, the same activity,
Dialogue: 0,0:01:25.59,0:01:27.91,Default,,0000,0000,0000,,but one of them makes you feel great
Dialogue: 0,0:01:27.94,0:01:31.64,Default,,0000,0000,0000,,and the other one,\Nwith just a small change of posture,
Dialogue: 0,0:01:31.66,0:01:32.88,Default,,0000,0000,0000,,makes you feel terrible.
Dialogue: 0,0:01:34.27,0:01:37.17,Default,,0000,0000,0000,,And I think one of the problems\Nwith classical economics is,
Dialogue: 0,0:01:37.20,0:01:39.63,Default,,0000,0000,0000,,it's absolutely preoccupied with reality.
Dialogue: 0,0:01:39.66,0:01:43.29,Default,,0000,0000,0000,,And reality isn't a particularly good\Nguide to human happiness.
Dialogue: 0,0:01:43.90,0:01:48.90,Default,,0000,0000,0000,,Why, for example,\Nare pensioners much happier
Dialogue: 0,0:01:48.93,0:01:50.31,Default,,0000,0000,0000,,than the young unemployed?
Dialogue: 0,0:01:51.29,0:01:54.54,Default,,0000,0000,0000,,Both of them, after all,\Nare in exactly the same stage of life.
Dialogue: 0,0:01:54.56,0:01:57.52,Default,,0000,0000,0000,,You both have too much time\Non your hands and not much money.
Dialogue: 0,0:01:58.36,0:02:01.06,Default,,0000,0000,0000,,But pensioners are reportedly\Nvery, very happy,
Dialogue: 0,0:02:01.08,0:02:04.51,Default,,0000,0000,0000,,whereas the unemployed\Nare extraordinarily unhappy and depressed.
Dialogue: 0,0:02:05.38,0:02:07.83,Default,,0000,0000,0000,,The reason, I think,\Nis that the pensioners believe
Dialogue: 0,0:02:07.86,0:02:09.43,Default,,0000,0000,0000,,they've chosen to be pensioners,
Dialogue: 0,0:02:09.45,0:02:13.40,Default,,0000,0000,0000,,whereas the young unemployed\Nfeel it's been thrust upon them.
Dialogue: 0,0:02:14.74,0:02:18.77,Default,,0000,0000,0000,,In England, the upper-middle classes have\Nactually solved this problem perfectly,
Dialogue: 0,0:02:18.80,0:02:21.12,Default,,0000,0000,0000,,because they've re-branded unemployment.
Dialogue: 0,0:02:21.15,0:02:23.41,Default,,0000,0000,0000,,If you're an upper-middle-class\NEnglish person,
Dialogue: 0,0:02:23.44,0:02:25.77,Default,,0000,0000,0000,,you call unemployment "a year off."
Dialogue: 0,0:02:25.79,0:02:28.48,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:02:28.51,0:02:31.55,Default,,0000,0000,0000,,And that's because having a son\Nwho's unemployed in Manchester
Dialogue: 0,0:02:31.58,0:02:33.50,Default,,0000,0000,0000,,is really quite embarrassing.
Dialogue: 0,0:02:33.53,0:02:36.60,Default,,0000,0000,0000,,But having a son\Nwho's unemployed in Thailand
Dialogue: 0,0:02:36.63,0:02:38.71,Default,,0000,0000,0000,,is really viewed\Nas quite an accomplishment.
Dialogue: 0,0:02:38.74,0:02:40.76,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:02:40.79,0:02:43.11,Default,,0000,0000,0000,,But actually, the power\Nto re-brand things --
Dialogue: 0,0:02:43.14,0:02:48.68,Default,,0000,0000,0000,,to understand that\Nour experiences, costs, things
Dialogue: 0,0:02:48.70,0:02:51.15,Default,,0000,0000,0000,,don't actually much depend\Non what they really are,
Dialogue: 0,0:02:51.17,0:02:52.75,Default,,0000,0000,0000,,but on how we view them --
Dialogue: 0,0:02:52.77,0:02:55.68,Default,,0000,0000,0000,,I genuinely think can't be overstated.
Dialogue: 0,0:02:55.70,0:02:58.16,Default,,0000,0000,0000,,There's an experiment\NI think Daniel Pink refers to,
Dialogue: 0,0:02:58.18,0:03:00.70,Default,,0000,0000,0000,,where you put two dogs in a box
Dialogue: 0,0:03:00.73,0:03:03.94,Default,,0000,0000,0000,,and the box has an electric floor.
Dialogue: 0,0:03:05.36,0:03:09.78,Default,,0000,0000,0000,,Every now and then,\Nan electric shock is applied to the floor,
Dialogue: 0,0:03:09.81,0:03:11.64,Default,,0000,0000,0000,,which pains the dogs.
Dialogue: 0,0:03:12.66,0:03:16.50,Default,,0000,0000,0000,,The only difference is one of the dogs\Nhas a small button in its half of the box.
Dialogue: 0,0:03:16.52,0:03:20.32,Default,,0000,0000,0000,,And when it nuzzles the button,\Nthe electric shock stops.
Dialogue: 0,0:03:21.38,0:03:23.88,Default,,0000,0000,0000,,The other dog doesn't have the button.
Dialogue: 0,0:03:23.90,0:03:28.14,Default,,0000,0000,0000,,It's exposed to exactly the same level\Nof pain as the dog in the first box,
Dialogue: 0,0:03:28.17,0:03:31.04,Default,,0000,0000,0000,,but it has no control\Nover the circumstances.
Dialogue: 0,0:03:32.18,0:03:35.07,Default,,0000,0000,0000,,Generally, the first dog\Ncan be relatively content.
Dialogue: 0,0:03:35.10,0:03:38.04,Default,,0000,0000,0000,,The second dog lapses\Ninto complete depression.
Dialogue: 0,0:03:39.38,0:03:43.67,Default,,0000,0000,0000,,The circumstances of our lives\Nmay actually matter less to our happiness
Dialogue: 0,0:03:43.69,0:03:47.43,Default,,0000,0000,0000,,than the sense of control\Nwe feel over our lives.
Dialogue: 0,0:03:48.51,0:03:50.07,Default,,0000,0000,0000,,It's an interesting question.
Dialogue: 0,0:03:51.27,0:03:54.35,Default,,0000,0000,0000,,We ask the question -- the whole\Ndebate in the Western world
Dialogue: 0,0:03:54.37,0:03:56.20,Default,,0000,0000,0000,,is about the level of taxation.
Dialogue: 0,0:03:56.23,0:03:58.45,Default,,0000,0000,0000,,But I think there's another\Ndebate to be asked,
Dialogue: 0,0:03:58.48,0:04:01.91,Default,,0000,0000,0000,,which is the level of control\Nwe have over our tax money,
Dialogue: 0,0:04:01.93,0:04:06.57,Default,,0000,0000,0000,,that what costs us 10 pounds\Nin one context can be a curse;
Dialogue: 0,0:04:06.59,0:04:11.19,Default,,0000,0000,0000,,what costs us 10 pounds in a different\Ncontext, we may actually welcome.
Dialogue: 0,0:04:12.30,0:04:16.62,Default,,0000,0000,0000,,You know, pay 20,000 pounds\Nin tax toward health,
Dialogue: 0,0:04:16.64,0:04:18.57,Default,,0000,0000,0000,,and you're merely feeling a mug.
Dialogue: 0,0:04:18.60,0:04:21.86,Default,,0000,0000,0000,,Pay 20,000 pounds\Nto endow a hospital ward,
Dialogue: 0,0:04:21.88,0:04:23.75,Default,,0000,0000,0000,,and you're called a philanthropist.
Dialogue: 0,0:04:24.92,0:04:28.32,Default,,0000,0000,0000,,I'm probably in the wrong country\Nto talk about willingness to pay tax.
Dialogue: 0,0:04:28.34,0:04:30.03,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:30.05,0:04:35.25,Default,,0000,0000,0000,,So I'll give you one in return:\Nhow you frame things really matters.
Dialogue: 0,0:04:35.28,0:04:37.56,Default,,0000,0000,0000,,Do you call it "The bailout of Greece"?
Dialogue: 0,0:04:37.58,0:04:40.78,Default,,0000,0000,0000,,Or "The bailout of a load of stupid banks\Nwhich lent to Greece"?
Dialogue: 0,0:04:40.80,0:04:41.81,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:41.83,0:04:44.18,Default,,0000,0000,0000,,Because they are actually the same thing.
Dialogue: 0,0:04:44.21,0:04:48.07,Default,,0000,0000,0000,,What you call them\Nactually affects how you react to them,
Dialogue: 0,0:04:48.09,0:04:50.13,Default,,0000,0000,0000,,viscerally and morally.
Dialogue: 0,0:04:50.15,0:04:53.34,Default,,0000,0000,0000,,I think psychological value is great,\Nto be absolutely honest.
Dialogue: 0,0:04:53.37,0:04:56.24,Default,,0000,0000,0000,,One of my great friends,\Na professor called Nick Chater,
Dialogue: 0,0:04:56.26,0:04:59.14,Default,,0000,0000,0000,,who's the Professor of Decision\NSciences in London,
Dialogue: 0,0:04:59.16,0:05:03.66,Default,,0000,0000,0000,,believes we should spend far less time\Nlooking into humanity's hidden depths,
Dialogue: 0,0:05:03.69,0:05:07.11,Default,,0000,0000,0000,,and spend much more time\Nexploring the hidden shallows.
Dialogue: 0,0:05:07.13,0:05:08.64,Default,,0000,0000,0000,,I think that's true, actually.
Dialogue: 0,0:05:08.67,0:05:13.74,Default,,0000,0000,0000,,I think impressions have an insane effect\Non what we think and what we do.
Dialogue: 0,0:05:13.77,0:05:17.35,Default,,0000,0000,0000,,But what we don't have is a really\Ngood model of human psychology --
Dialogue: 0,0:05:17.37,0:05:19.66,Default,,0000,0000,0000,,at least pre-Kahneman, perhaps,
Dialogue: 0,0:05:19.68,0:05:22.65,Default,,0000,0000,0000,,we didn't have a really good model\Nof human psychology
Dialogue: 0,0:05:22.67,0:05:27.54,Default,,0000,0000,0000,,to put alongside models of engineering,\Nof neoclassical economics.
Dialogue: 0,0:05:27.57,0:05:30.89,Default,,0000,0000,0000,,So people who believed in psychological\Nsolutions didn't have a model.
Dialogue: 0,0:05:30.92,0:05:32.85,Default,,0000,0000,0000,,We didn't have a framework.
Dialogue: 0,0:05:32.87,0:05:36.22,Default,,0000,0000,0000,,This is what Warren Buffett's\Nbusiness partner Charlie Munger calls
Dialogue: 0,0:05:36.24,0:05:38.61,Default,,0000,0000,0000,,"a latticework on which\Nto hang your ideas."
Dialogue: 0,0:05:39.45,0:05:42.32,Default,,0000,0000,0000,,Engineers, economists,\Nclassical economists
Dialogue: 0,0:05:42.34,0:05:45.28,Default,,0000,0000,0000,,all had a very, very robust\Nexisting latticework
Dialogue: 0,0:05:45.30,0:05:47.99,Default,,0000,0000,0000,,on which practically\Nevery idea could be hung.
Dialogue: 0,0:05:48.02,0:05:51.41,Default,,0000,0000,0000,,We merely have a collection\Nof random individual insights
Dialogue: 0,0:05:51.44,0:05:52.84,Default,,0000,0000,0000,,without an overall model.
Dialogue: 0,0:05:53.61,0:05:58.05,Default,,0000,0000,0000,,And what that means\Nis that, in looking at solutions,
Dialogue: 0,0:05:58.08,0:06:00.80,Default,,0000,0000,0000,,we've probably given too much priority
Dialogue: 0,0:06:00.82,0:06:04.95,Default,,0000,0000,0000,,to what I call technical engineering\Nsolutions, Newtonian solutions,
Dialogue: 0,0:06:04.97,0:06:07.35,Default,,0000,0000,0000,,and not nearly enough\Nto the psychological ones.
Dialogue: 0,0:06:07.37,0:06:09.68,Default,,0000,0000,0000,,You know my example of the Eurostar:
Dialogue: 0,0:06:09.71,0:06:10.91,Default,,0000,0000,0000,,six million pounds spent
Dialogue: 0,0:06:10.93,0:06:14.15,Default,,0000,0000,0000,,to reduce the journey time\Nbetween Paris and London
Dialogue: 0,0:06:14.18,0:06:15.61,Default,,0000,0000,0000,,by about 40 minutes.
Dialogue: 0,0:06:16.57,0:06:20.42,Default,,0000,0000,0000,,For 0.01 percent of this money,\Nyou could have put wi-fi on the trains,
Dialogue: 0,0:06:20.44,0:06:23.11,Default,,0000,0000,0000,,which wouldn't have reduced\Nthe duration of the journey,
Dialogue: 0,0:06:23.13,0:06:27.05,Default,,0000,0000,0000,,but would have improved its enjoyment\Nand its usefulness far more.
Dialogue: 0,0:06:28.02,0:06:29.69,Default,,0000,0000,0000,,For maybe 10 percent of the money,
Dialogue: 0,0:06:29.72,0:06:33.05,Default,,0000,0000,0000,,you could have paid all of the world's top\Nmale and female supermodels
Dialogue: 0,0:06:33.08,0:06:36.01,Default,,0000,0000,0000,,to walk up and down the train\Nhanding out free Château Pétrus
Dialogue: 0,0:06:36.03,0:06:37.31,Default,,0000,0000,0000,,to all the passengers.
Dialogue: 0,0:06:37.33,0:06:38.37,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:06:38.40,0:06:40.75,Default,,0000,0000,0000,,You'd still have five million\Npounds in change,
Dialogue: 0,0:06:40.77,0:06:43.40,Default,,0000,0000,0000,,and people would ask\Nfor the trains to be slowed down.
Dialogue: 0,0:06:43.42,0:06:47.52,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:06:47.54,0:06:50.90,Default,,0000,0000,0000,,Why were we not given the chance\Nto solve that problem psychologically?
Dialogue: 0,0:06:50.92,0:06:53.41,Default,,0000,0000,0000,,I think it's because there's an imbalance,
Dialogue: 0,0:06:53.43,0:07:00.07,Default,,0000,0000,0000,,an asymmetry in the way we treat creative,\Nemotionally driven psychological ideas
Dialogue: 0,0:07:00.09,0:07:04.99,Default,,0000,0000,0000,,versus the way we treat rational,\Nnumerical, spreadsheet-driven ideas.
Dialogue: 0,0:07:05.02,0:07:07.48,Default,,0000,0000,0000,,If you're a creative person,\NI think, quite rightly,
Dialogue: 0,0:07:07.51,0:07:09.64,Default,,0000,0000,0000,,you have to share\Nall your ideas for approval
Dialogue: 0,0:07:09.67,0:07:11.60,Default,,0000,0000,0000,,with people much more rational than you.
Dialogue: 0,0:07:11.63,0:07:14.89,Default,,0000,0000,0000,,You have to go in\Nand have a cost-benefit analysis,
Dialogue: 0,0:07:14.92,0:07:17.97,Default,,0000,0000,0000,,a feasibility study,\Nan ROI study and so forth.
Dialogue: 0,0:07:17.99,0:07:19.73,Default,,0000,0000,0000,,And I think that's probably right.
Dialogue: 0,0:07:20.64,0:07:23.29,Default,,0000,0000,0000,,But this does not apply\Nthe other way around.
Dialogue: 0,0:07:23.31,0:07:25.34,Default,,0000,0000,0000,,People who have an existing framework --
Dialogue: 0,0:07:25.36,0:07:27.74,Default,,0000,0000,0000,,an economic framework,\Nan engineering framework --
Dialogue: 0,0:07:27.77,0:07:30.93,Default,,0000,0000,0000,,feel that, actually,\Nlogic is its own answer.
Dialogue: 0,0:07:31.50,0:07:34.41,Default,,0000,0000,0000,,What they don't say is,\N"Well, the numbers all seem to add up,
Dialogue: 0,0:07:34.43,0:07:37.88,Default,,0000,0000,0000,,but before I present this idea,\NI'll show it to some really crazy people
Dialogue: 0,0:07:37.91,0:07:40.28,Default,,0000,0000,0000,,to see if they can come up with\Nsomething better."
Dialogue: 0,0:07:40.30,0:07:43.05,Default,,0000,0000,0000,,And so we -- artificially,\NI think -- prioritize
Dialogue: 0,0:07:43.08,0:07:46.83,Default,,0000,0000,0000,,what I'd call mechanistic ideas\Nover psychological ideas.
Dialogue: 0,0:07:47.58,0:07:49.61,Default,,0000,0000,0000,,An example of a great psychological idea:
Dialogue: 0,0:07:49.63,0:07:52.25,Default,,0000,0000,0000,,the single best improvement\Nin passenger satisfaction
Dialogue: 0,0:07:52.27,0:07:53.58,Default,,0000,0000,0000,,on the London Underground,
Dialogue: 0,0:07:53.60,0:07:55.17,Default,,0000,0000,0000,,per pound spent,
Dialogue: 0,0:07:55.20,0:07:57.53,Default,,0000,0000,0000,,came when they didn't add\Nany extra trains,
Dialogue: 0,0:07:57.55,0:07:59.46,Default,,0000,0000,0000,,nor change the frequency of the trains;
Dialogue: 0,0:07:59.48,0:08:02.61,Default,,0000,0000,0000,,they put dot matrix display boards\Non the platforms --
Dialogue: 0,0:08:03.62,0:08:07.47,Default,,0000,0000,0000,,because the nature of a wait is not just\Ndependent on its numerical quality,
Dialogue: 0,0:08:07.49,0:08:08.74,Default,,0000,0000,0000,,its duration,
Dialogue: 0,0:08:08.76,0:08:12.17,Default,,0000,0000,0000,,but on the level of uncertainty\Nyou experience during that wait.
Dialogue: 0,0:08:12.20,0:08:15.09,Default,,0000,0000,0000,,Waiting seven minutes for a train\Nwith a countdown clock
Dialogue: 0,0:08:15.11,0:08:17.00,Default,,0000,0000,0000,,is less frustrating and irritating
Dialogue: 0,0:08:17.03,0:08:19.97,Default,,0000,0000,0000,,than waiting four minutes,\Nknuckle biting, going,
Dialogue: 0,0:08:19.99,0:08:22.28,Default,,0000,0000,0000,,"When's this train\Ngoing to damn well arrive?"
Dialogue: 0,0:08:22.88,0:08:25.44,Default,,0000,0000,0000,,Here's a beautiful example\Nof a psychological solution
Dialogue: 0,0:08:25.46,0:08:26.63,Default,,0000,0000,0000,,deployed in Korea.
Dialogue: 0,0:08:26.66,0:08:29.06,Default,,0000,0000,0000,,Red traffic lights have a countdown delay.
Dialogue: 0,0:08:29.09,0:08:32.11,Default,,0000,0000,0000,,It's proven to reduce\Nthe accident rate in experiments.
Dialogue: 0,0:08:32.14,0:08:33.30,Default,,0000,0000,0000,,Why?
Dialogue: 0,0:08:33.32,0:08:36.84,Default,,0000,0000,0000,,Because road rage, impatience and general\Nirritation are massively reduced
Dialogue: 0,0:08:36.86,0:08:40.71,Default,,0000,0000,0000,,when you can actually see\Nthe time you have to wait.
Dialogue: 0,0:08:40.74,0:08:43.64,Default,,0000,0000,0000,,In China, not really understanding\Nthe principle behind this,
Dialogue: 0,0:08:43.66,0:08:46.40,Default,,0000,0000,0000,,they applied the same principle\Nto green traffic lights --
Dialogue: 0,0:08:46.43,0:08:50.27,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:08:50.29,0:08:51.81,Default,,0000,0000,0000,,which isn't a great idea.
Dialogue: 0,0:08:51.84,0:08:54.93,Default,,0000,0000,0000,,You're 200 yards away, you realize\Nyou've got five seconds to go,
Dialogue: 0,0:08:54.95,0:08:56.10,Default,,0000,0000,0000,,you floor it.
Dialogue: 0,0:08:56.13,0:08:59.45,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:08:59.47,0:09:01.97,Default,,0000,0000,0000,,The Koreans, very assiduously,\Ndid test both.
Dialogue: 0,0:09:01.100,0:09:05.33,Default,,0000,0000,0000,,The accident rate goes down\Nwhen you apply this to red traffic lights;
Dialogue: 0,0:09:05.36,0:09:07.94,Default,,0000,0000,0000,,it goes up when you apply it\Nto green traffic lights.
Dialogue: 0,0:09:07.97,0:09:10.91,Default,,0000,0000,0000,,This is all I'm asking for, really,\Nin human decision making,
Dialogue: 0,0:09:10.93,0:09:13.04,Default,,0000,0000,0000,,is the consideration\Nof these three things.
Dialogue: 0,0:09:13.06,0:09:16.02,Default,,0000,0000,0000,,I'm not asking for the complete primacy\Nof one over the other.
Dialogue: 0,0:09:16.05,0:09:18.29,Default,,0000,0000,0000,,I'm merely saying\Nthat when you solve problems,
Dialogue: 0,0:09:18.31,0:09:20.80,Default,,0000,0000,0000,,you should look\Nat all three of these equally,
Dialogue: 0,0:09:20.82,0:09:23.02,Default,,0000,0000,0000,,and you should seek as far as possible
Dialogue: 0,0:09:23.04,0:09:25.90,Default,,0000,0000,0000,,to find solutions which sit\Nin the sweet spot in the middle.
Dialogue: 0,0:09:25.93,0:09:27.90,Default,,0000,0000,0000,,If you actually look at a great business,
Dialogue: 0,0:09:27.92,0:09:31.51,Default,,0000,0000,0000,,you'll nearly always see all of these\Nthree things coming into play.
Dialogue: 0,0:09:31.54,0:09:33.22,Default,,0000,0000,0000,,Really successful businesses --
Dialogue: 0,0:09:33.24,0:09:35.90,Default,,0000,0000,0000,,Google is a great, great\Ntechnological success,
Dialogue: 0,0:09:35.93,0:09:39.13,Default,,0000,0000,0000,,but it's also based\Non a very good psychological insight:
Dialogue: 0,0:09:40.09,0:09:42.65,Default,,0000,0000,0000,,people believe something\Nthat only does one thing
Dialogue: 0,0:09:42.68,0:09:46.83,Default,,0000,0000,0000,,is better at that thing than something\Nthat does that thing and something else.
Dialogue: 0,0:09:46.86,0:09:49.56,Default,,0000,0000,0000,,It's an innate thing\Ncalled "goal dilution."
Dialogue: 0,0:09:49.59,0:09:52.35,Default,,0000,0000,0000,,Ayelet Fishbach has written\Na paper about this.
Dialogue: 0,0:09:52.37,0:09:54.86,Default,,0000,0000,0000,,Everybody else at the time\Nof Google, more or less,
Dialogue: 0,0:09:54.89,0:09:56.13,Default,,0000,0000,0000,,was trying to be a portal.
Dialogue: 0,0:09:56.16,0:09:58.98,Default,,0000,0000,0000,,Yes, there's a search function,\Nbut you also have weather,
Dialogue: 0,0:09:59.01,0:10:00.67,Default,,0000,0000,0000,,sports scores, bits of news.
Dialogue: 0,0:10:01.93,0:10:04.47,Default,,0000,0000,0000,,Google understood\Nthat if you're just a search engine,
Dialogue: 0,0:10:04.50,0:10:07.33,Default,,0000,0000,0000,,people assume you're a very,\Nvery good search engine.
Dialogue: 0,0:10:07.36,0:10:10.84,Default,,0000,0000,0000,,All of you know this, actually,\Nfrom when you go in to buy a television,
Dialogue: 0,0:10:10.86,0:10:13.76,Default,,0000,0000,0000,,and in the shabbier end\Nof the row of flat-screen TVs,
Dialogue: 0,0:10:13.79,0:10:16.09,Default,,0000,0000,0000,,you can see, are these\Nrather despised things
Dialogue: 0,0:10:16.12,0:10:19.09,Default,,0000,0000,0000,,called "combined TV and DVD players."
Dialogue: 0,0:10:19.80,0:10:22.99,Default,,0000,0000,0000,,And we have no knowledge whatsoever\Nof the quality of those things,
Dialogue: 0,0:10:23.02,0:10:26.46,Default,,0000,0000,0000,,but we look at a combined\NTV and DVD player and we go, "Uck.
Dialogue: 0,0:10:26.48,0:10:30.41,Default,,0000,0000,0000,,It's probably a bit of a crap telly\Nand a bit rubbish as a DVD player."
Dialogue: 0,0:10:30.44,0:10:32.85,Default,,0000,0000,0000,,So we walk out of the shops\Nwith one of each.
Dialogue: 0,0:10:33.33,0:10:37.93,Default,,0000,0000,0000,,Google is as much a psychological success\Nas it is a technological one.
Dialogue: 0,0:10:39.00,0:10:41.63,Default,,0000,0000,0000,,I propose that we can use\Npsychology to solve problems
Dialogue: 0,0:10:41.66,0:10:43.99,Default,,0000,0000,0000,,that we didn't even realize\Nwere problems at all.
Dialogue: 0,0:10:44.01,0:10:47.78,Default,,0000,0000,0000,,This is my suggestion for getting people\Nto finish their course of antibiotics.
Dialogue: 0,0:10:47.80,0:10:49.37,Default,,0000,0000,0000,,Don't give them 24 white pills;
Dialogue: 0,0:10:49.39,0:10:52.40,Default,,0000,0000,0000,,give them 18 white pills and six blue ones
Dialogue: 0,0:10:52.43,0:10:54.50,Default,,0000,0000,0000,,and tell them to take\Nthe white pills first,
Dialogue: 0,0:10:54.52,0:10:55.99,Default,,0000,0000,0000,,and then take the blue ones.
Dialogue: 0,0:10:56.89,0:10:58.04,Default,,0000,0000,0000,,It's called "chunking."
Dialogue: 0,0:10:58.06,0:11:01.04,Default,,0000,0000,0000,,The likelihood that people will get\Nto the end is much greater
Dialogue: 0,0:11:01.06,0:11:03.64,Default,,0000,0000,0000,,when there is a milestone\Nsomewhere in the middle.
Dialogue: 0,0:11:04.85,0:11:07.19,Default,,0000,0000,0000,,One of the great mistakes,\NI think, of economics
Dialogue: 0,0:11:07.22,0:11:09.62,Default,,0000,0000,0000,,is it fails to understand\Nthat what something is --
Dialogue: 0,0:11:09.64,0:11:12.15,Default,,0000,0000,0000,,whether it's retirement,\Nunemployment, cost --
Dialogue: 0,0:11:13.42,0:11:17.14,Default,,0000,0000,0000,,is a function, not only of its amount,\Nbut also its meaning.
Dialogue: 0,0:11:17.97,0:11:20.77,Default,,0000,0000,0000,,This is a toll crossing in Britain.
Dialogue: 0,0:11:20.80,0:11:23.73,Default,,0000,0000,0000,,Quite often queues happen at the tolls.
Dialogue: 0,0:11:23.76,0:11:25.98,Default,,0000,0000,0000,,Sometimes you get very,\Nvery severe queues.
Dialogue: 0,0:11:26.01,0:11:28.20,Default,,0000,0000,0000,,You could apply\Nthe same principle, actually,
Dialogue: 0,0:11:28.22,0:11:29.96,Default,,0000,0000,0000,,to the security lanes in airports.
Dialogue: 0,0:11:29.98,0:11:32.97,Default,,0000,0000,0000,,What would happen if you could actually\Npay twice as much money
Dialogue: 0,0:11:32.99,0:11:34.14,Default,,0000,0000,0000,,to cross the bridge,
Dialogue: 0,0:11:34.17,0:11:36.29,Default,,0000,0000,0000,,but go through a lane\Nthat's an express lane?
Dialogue: 0,0:11:36.31,0:11:38.08,Default,,0000,0000,0000,,It's not an unreasonable thing to do;
Dialogue: 0,0:11:38.11,0:11:40.12,Default,,0000,0000,0000,,it's an economically\Nefficient thing to do.
Dialogue: 0,0:11:40.14,0:11:42.18,Default,,0000,0000,0000,,Time means more\Nto some people than others.
Dialogue: 0,0:11:42.21,0:11:44.64,Default,,0000,0000,0000,,If you're waiting trying\Nto get to a job interview,
Dialogue: 0,0:11:44.66,0:11:48.88,Default,,0000,0000,0000,,you'd patently pay a couple of pounds more\Nto go through the fast lane.
Dialogue: 0,0:11:48.90,0:11:51.23,Default,,0000,0000,0000,,If you're on the way\Nto visit your mother-in-law,
Dialogue: 0,0:11:51.25,0:11:52.40,Default,,0000,0000,0000,,you'd probably prefer --
Dialogue: 0,0:11:52.43,0:11:53.61,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:11:53.63,0:11:55.77,Default,,0000,0000,0000,,you'd probably prefer to stay on the left.
Dialogue: 0,0:11:56.36,0:11:59.83,Default,,0000,0000,0000,,The only problem is if you introduce\Nthis economically efficient solution,
Dialogue: 0,0:11:59.86,0:12:01.01,Default,,0000,0000,0000,,people hate it ...
Dialogue: 0,0:12:01.63,0:12:04.96,Default,,0000,0000,0000,,because they think you're deliberately\Ncreating delays at the bridge
Dialogue: 0,0:12:04.99,0:12:06.64,Default,,0000,0000,0000,,in order to maximize your revenue,
Dialogue: 0,0:12:06.67,0:12:10.06,Default,,0000,0000,0000,,and, "Why on earth should I pay\Nto subsidize your incompetence?"
Dialogue: 0,0:12:10.38,0:12:12.56,Default,,0000,0000,0000,,On the other hand,\Nchange the frame slightly
Dialogue: 0,0:12:12.58,0:12:14.87,Default,,0000,0000,0000,,and create charitable yield management,
Dialogue: 0,0:12:14.90,0:12:18.03,Default,,0000,0000,0000,,so the extra money you get\Ngoes not to the bridge company,
Dialogue: 0,0:12:18.05,0:12:19.24,Default,,0000,0000,0000,,it goes to charity ...
Dialogue: 0,0:12:20.21,0:12:23.06,Default,,0000,0000,0000,,and the mental willingness\Nto pay completely changes.
Dialogue: 0,0:12:24.13,0:12:26.77,Default,,0000,0000,0000,,You have a relatively\Neconomically efficient solution,
Dialogue: 0,0:12:26.80,0:12:29.11,Default,,0000,0000,0000,,but one that actually meets\Nwith public approval
Dialogue: 0,0:12:29.14,0:12:31.14,Default,,0000,0000,0000,,and even a small degree of affection,
Dialogue: 0,0:12:31.16,0:12:33.35,Default,,0000,0000,0000,,rather than being seen as bastardy.
Dialogue: 0,0:12:34.50,0:12:37.16,Default,,0000,0000,0000,,So where economists\Nmake the fundamental mistake
Dialogue: 0,0:12:37.18,0:12:39.15,Default,,0000,0000,0000,,is they think that money is money.
Dialogue: 0,0:12:40.28,0:12:44.51,Default,,0000,0000,0000,,Actually, my pain experienced\Nin paying five pounds
Dialogue: 0,0:12:44.53,0:12:46.68,Default,,0000,0000,0000,,is not just proportionate to the amount,
Dialogue: 0,0:12:46.70,0:12:48.68,Default,,0000,0000,0000,,but where I think that money is going.
Dialogue: 0,0:12:49.31,0:12:52.31,Default,,0000,0000,0000,,And I think understanding that\Ncould revolutionize tax policy.
Dialogue: 0,0:12:52.33,0:12:54.34,Default,,0000,0000,0000,,It could revolutionize\Nthe public services.
Dialogue: 0,0:12:54.36,0:12:56.87,Default,,0000,0000,0000,,It could actually change things\Nquite significantly.
Dialogue: 0,0:12:56.90,0:12:58.36,Default,,0000,0000,0000,,[Ludwig Von Mises is my hero.]
Dialogue: 0,0:12:58.38,0:13:00.10,Default,,0000,0000,0000,,Here's a guy you all need to study.
Dialogue: 0,0:13:00.12,0:13:01.73,Default,,0000,0000,0000,,He's an Austrian School economist
Dialogue: 0,0:13:01.75,0:13:06.32,Default,,0000,0000,0000,,who was first active in the first half\Nof the 20th century in Vienna.
Dialogue: 0,0:13:06.34,0:13:08.53,Default,,0000,0000,0000,,What was interesting\Nabout the Austrian School
Dialogue: 0,0:13:08.56,0:13:11.59,Default,,0000,0000,0000,,is they actually grew up alongside Freud.
Dialogue: 0,0:13:11.61,0:13:14.26,Default,,0000,0000,0000,,And so they're predominantly\Ninterested in psychology.
Dialogue: 0,0:13:14.29,0:13:18.84,Default,,0000,0000,0000,,They believed that there was\Na discipline called praxeology,
Dialogue: 0,0:13:18.87,0:13:21.46,Default,,0000,0000,0000,,which is a prior discipline\Nto the study of economics.
Dialogue: 0,0:13:21.49,0:13:25.93,Default,,0000,0000,0000,,Praxeology is the study of human choice,\Naction and decision-making.
Dialogue: 0,0:13:26.66,0:13:27.98,Default,,0000,0000,0000,,I think they're right.
Dialogue: 0,0:13:28.01,0:13:30.08,Default,,0000,0000,0000,,I think the danger\Nwe have in today's world
Dialogue: 0,0:13:30.10,0:13:31.78,Default,,0000,0000,0000,,is we have the study of economics
Dialogue: 0,0:13:31.80,0:13:35.84,Default,,0000,0000,0000,,considers itself to be a prior discipline\Nto the study of human psychology.
Dialogue: 0,0:13:35.86,0:13:38.83,Default,,0000,0000,0000,,But as Charlie Munger says,\N"If economics isn't behavioral,
Dialogue: 0,0:13:38.85,0:13:40.40,Default,,0000,0000,0000,,I don't know what the hell is."
Dialogue: 0,0:13:41.80,0:13:47.60,Default,,0000,0000,0000,,Von Mises, interestingly, believes\Neconomics is just a subset of psychology.
Dialogue: 0,0:13:47.63,0:13:49.53,Default,,0000,0000,0000,,I think he just refers to economics
Dialogue: 0,0:13:49.56,0:13:52.84,Default,,0000,0000,0000,,as "the study of human praxeology\Nunder conditions of scarcity."
Dialogue: 0,0:13:53.74,0:13:56.84,Default,,0000,0000,0000,,But Von Mises, among many other things,
Dialogue: 0,0:13:56.86,0:14:01.51,Default,,0000,0000,0000,,I think uses an analogy which is probably\Nthe best justification and explanation
Dialogue: 0,0:14:01.54,0:14:05.74,Default,,0000,0000,0000,,for the value of marketing,\Nthe value of perceived value
Dialogue: 0,0:14:05.77,0:14:09.04,Default,,0000,0000,0000,,and the fact that we should treat it\Nas being absolutely equivalent
Dialogue: 0,0:14:09.07,0:14:10.55,Default,,0000,0000,0000,,to any other kind of value.
Dialogue: 0,0:14:11.05,0:14:14.01,Default,,0000,0000,0000,,We tend to, all of us, even those of us\Nwho work in marketing,
Dialogue: 0,0:14:14.03,0:14:15.33,Default,,0000,0000,0000,,think of value in two ways:
Dialogue: 0,0:14:15.35,0:14:18.25,Default,,0000,0000,0000,,the real value, which is when\Nyou make something in a factory
Dialogue: 0,0:14:18.27,0:14:19.43,Default,,0000,0000,0000,,or provide a service,
Dialogue: 0,0:14:19.45,0:14:21.07,Default,,0000,0000,0000,,and then there's a dubious value,
Dialogue: 0,0:14:21.09,0:14:23.90,Default,,0000,0000,0000,,which you create by changing\Nthe way people look at things.
Dialogue: 0,0:14:23.93,0:14:26.22,Default,,0000,0000,0000,,Von Mises completely rejected\Nthis distinction.
Dialogue: 0,0:14:26.25,0:14:28.14,Default,,0000,0000,0000,,And he used this following analogy:
Dialogue: 0,0:14:28.16,0:14:33.49,Default,,0000,0000,0000,,he referred to strange economists\Ncalled the French physiocrats,
Dialogue: 0,0:14:33.52,0:14:37.15,Default,,0000,0000,0000,,who believed that the only true value\Nwas what you extracted from the land.
Dialogue: 0,0:14:37.17,0:14:39.66,Default,,0000,0000,0000,,So if you're a shepherd\Nor a quarryman or a farmer,
Dialogue: 0,0:14:39.68,0:14:41.10,Default,,0000,0000,0000,,you created true value.
Dialogue: 0,0:14:41.13,0:14:43.98,Default,,0000,0000,0000,,If however, you bought\Nsome wool from the shepherd
Dialogue: 0,0:14:44.01,0:14:46.99,Default,,0000,0000,0000,,and charged a premium\Nfor converting it into a hat,
Dialogue: 0,0:14:47.01,0:14:48.80,Default,,0000,0000,0000,,you weren't actually creating value,
Dialogue: 0,0:14:48.82,0:14:50.58,Default,,0000,0000,0000,,you were exploiting the shepherd.
Dialogue: 0,0:14:51.44,0:14:55.16,Default,,0000,0000,0000,,Now, Von Mises said that modern\Neconomists make exactly the same mistake
Dialogue: 0,0:14:55.19,0:14:57.24,Default,,0000,0000,0000,,with regard to advertising and marketing.
Dialogue: 0,0:14:57.58,0:14:59.46,Default,,0000,0000,0000,,He says if you run a restaurant,
Dialogue: 0,0:14:59.48,0:15:01.72,Default,,0000,0000,0000,,there is no healthy distinction to be made
Dialogue: 0,0:15:01.75,0:15:04.30,Default,,0000,0000,0000,,between the value you create\Nby cooking the food
Dialogue: 0,0:15:04.32,0:15:06.63,Default,,0000,0000,0000,,and the value you create\Nby sweeping the floor.
Dialogue: 0,0:15:07.20,0:15:09.69,Default,,0000,0000,0000,,One of them creates, perhaps,\Nthe primary product --
Dialogue: 0,0:15:09.72,0:15:11.58,Default,,0000,0000,0000,,the thing we think we're paying for --
Dialogue: 0,0:15:11.61,0:15:14.45,Default,,0000,0000,0000,,the other one creates a context\Nwithin which we can enjoy
Dialogue: 0,0:15:14.47,0:15:15.100,Default,,0000,0000,0000,,and appreciate that product.
Dialogue: 0,0:15:16.02,0:15:19.19,Default,,0000,0000,0000,,And the idea that one of them\Nshould have priority over the other
Dialogue: 0,0:15:19.22,0:15:20.36,Default,,0000,0000,0000,,is fundamentally wrong.
Dialogue: 0,0:15:20.94,0:15:22.61,Default,,0000,0000,0000,,Try this quick thought experiment:
Dialogue: 0,0:15:22.64,0:15:25.29,Default,,0000,0000,0000,,imagine a restaurant\Nthat serves Michelin-starred food,
Dialogue: 0,0:15:25.31,0:15:27.96,Default,,0000,0000,0000,,but where the restaurant smells of sewage
Dialogue: 0,0:15:27.98,0:15:30.12,Default,,0000,0000,0000,,and there's human feces on the floor.
Dialogue: 0,0:15:30.14,0:15:31.55,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:15:31.58,0:15:34.07,Default,,0000,0000,0000,,The best thing you can do there\Nto create value
Dialogue: 0,0:15:34.09,0:15:37.11,Default,,0000,0000,0000,,is not actually to improve\Nthe food still further,
Dialogue: 0,0:15:37.13,0:15:39.93,Default,,0000,0000,0000,,it's to get rid of the smell\Nand clean up the floor.
Dialogue: 0,0:15:42.26,0:15:44.81,Default,,0000,0000,0000,,And it's vital we understand this.
Dialogue: 0,0:15:44.84,0:15:47.48,Default,,0000,0000,0000,,If that seems like a sort\Nof strange, abstruse thing --
Dialogue: 0,0:15:47.51,0:15:51.40,Default,,0000,0000,0000,,in the UK, the post office\Nhad a 98 percent success rate
Dialogue: 0,0:15:51.43,0:15:53.61,Default,,0000,0000,0000,,at delivering first-class\Nmail the next day.
Dialogue: 0,0:15:54.19,0:15:56.08,Default,,0000,0000,0000,,They decided this wasn't good enough,
Dialogue: 0,0:15:56.10,0:15:57.89,Default,,0000,0000,0000,,and they wanted to get it up to 99.
Dialogue: 0,0:15:59.23,0:16:02.61,Default,,0000,0000,0000,,The effort to do that\Nalmost broke the organization.
Dialogue: 0,0:16:03.52,0:16:05.91,Default,,0000,0000,0000,,If, at the same time,\Nyou'd gone and asked people,
Dialogue: 0,0:16:05.93,0:16:08.75,Default,,0000,0000,0000,,"What percentage of first-class mail\Narrives the next day?"
Dialogue: 0,0:16:08.78,0:16:12.68,Default,,0000,0000,0000,,the average answer, or the modal answer,\Nwould have been "50 to 60 percent."
Dialogue: 0,0:16:13.38,0:16:16.10,Default,,0000,0000,0000,,Now, if your perception\Nis much worse than your reality,
Dialogue: 0,0:16:16.12,0:16:19.14,Default,,0000,0000,0000,,what on earth are you doing\Ntrying to change the reality?
Dialogue: 0,0:16:19.17,0:16:22.78,Default,,0000,0000,0000,,That's like trying to improve the food\Nin a restaurant that stinks.
Dialogue: 0,0:16:24.36,0:16:27.08,Default,,0000,0000,0000,,What you need to do is,\Nfirst of all, tell people
Dialogue: 0,0:16:27.10,0:16:31.61,Default,,0000,0000,0000,,that 98 percent of first-class mail\Ngets there the next day.
Dialogue: 0,0:16:31.64,0:16:33.16,Default,,0000,0000,0000,,That's pretty good.
Dialogue: 0,0:16:33.18,0:16:36.39,Default,,0000,0000,0000,,I would argue, in Britain,\Nthere's a much better frame of reference,
Dialogue: 0,0:16:36.41,0:16:39.78,Default,,0000,0000,0000,,which is to tell people that more\Nfirst-class mail arrives the next day
Dialogue: 0,0:16:39.80,0:16:42.52,Default,,0000,0000,0000,,in the UK than in Germany,\Nbecause generally, in Britain,
Dialogue: 0,0:16:42.54,0:16:44.83,Default,,0000,0000,0000,,if you want to make us happy\Nabout something,
Dialogue: 0,0:16:44.85,0:16:47.04,Default,,0000,0000,0000,,just tell us we do it\Nbetter than the Germans.
Dialogue: 0,0:16:47.07,0:16:48.80,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:16:48.82,0:16:51.07,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:16:51.10,0:16:54.32,Default,,0000,0000,0000,,Choose your frame of reference\Nand the perceived value,
Dialogue: 0,0:16:54.34,0:16:57.75,Default,,0000,0000,0000,,and therefore, the actual value\Nis completely transformed.
Dialogue: 0,0:16:57.77,0:16:59.42,Default,,0000,0000,0000,,It has to be said of the Germans
Dialogue: 0,0:16:59.44,0:17:02.14,Default,,0000,0000,0000,,that the Germans and the French\Nare doing a brilliant job
Dialogue: 0,0:17:02.17,0:17:03.62,Default,,0000,0000,0000,,of creating a united Europe.
Dialogue: 0,0:17:03.64,0:17:06.51,Default,,0000,0000,0000,,The only thing they didn't expect\Nis they're uniting Europe
Dialogue: 0,0:17:06.54,0:17:09.54,Default,,0000,0000,0000,,through a shared mild hatred\Nof the French and Germans.
Dialogue: 0,0:17:09.56,0:17:11.61,Default,,0000,0000,0000,,But I'm British;\Nthat's the way we like it.
Dialogue: 0,0:17:11.63,0:17:13.76,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:17:14.10,0:17:16.22,Default,,0000,0000,0000,,What you'll also notice\Nis that, in any case,
Dialogue: 0,0:17:16.24,0:17:17.43,Default,,0000,0000,0000,,our perception is leaky.
Dialogue: 0,0:17:17.46,0:17:20.34,Default,,0000,0000,0000,,We can't tell the difference\Nbetween the quality of the food
Dialogue: 0,0:17:20.36,0:17:22.37,Default,,0000,0000,0000,,and the environment\Nin which we consume it.
Dialogue: 0,0:17:22.40,0:17:24.44,Default,,0000,0000,0000,,All of you will have seen this phenomenon
Dialogue: 0,0:17:24.46,0:17:26.44,Default,,0000,0000,0000,,if you have your car washed or valeted.
Dialogue: 0,0:17:26.46,0:17:29.59,Default,,0000,0000,0000,,When you drive away,\Nyour car feels as if it drives better.
Dialogue: 0,0:17:29.61,0:17:30.95,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:17:30.98,0:17:32.23,Default,,0000,0000,0000,,And the reason for this --
Dialogue: 0,0:17:32.26,0:17:34.90,Default,,0000,0000,0000,,unless my car valet\Nmysteriously is changing the oil
Dialogue: 0,0:17:34.93,0:17:38.27,Default,,0000,0000,0000,,and performing work which I'm not paying\Nhim for and I'm unaware of --
Dialogue: 0,0:17:38.29,0:17:40.60,Default,,0000,0000,0000,,is because perception\Nis, in any case, leaky.
Dialogue: 0,0:17:40.62,0:17:44.54,Default,,0000,0000,0000,,Analgesics that are branded\Nare more effective at reducing pain
Dialogue: 0,0:17:44.57,0:17:46.38,Default,,0000,0000,0000,,than analgesics that are not branded.
Dialogue: 0,0:17:46.40,0:17:49.02,Default,,0000,0000,0000,,I don't just mean through reported\Npain reduction --
Dialogue: 0,0:17:49.04,0:17:50.71,Default,,0000,0000,0000,,actual measured pain reduction.
Dialogue: 0,0:17:50.74,0:17:55.36,Default,,0000,0000,0000,,And so perception\Nactually is leaky in any case.
Dialogue: 0,0:17:56.02,0:17:59.04,Default,,0000,0000,0000,,So if you do something\Nthat's perceptually bad in one respect,
Dialogue: 0,0:17:59.06,0:18:00.29,Default,,0000,0000,0000,,you can damage the other.
Dialogue: 0,0:18:00.31,0:18:01.46,Default,,0000,0000,0000,,Thank you very much.
Dialogue: 0,0:18:01.48,0:18:03.87,Default,,0000,0000,0000,,(Applause)