Isolation, Pepsi

1
Isolation,Pepsis Challenge, Democracy, and a
Revolution in Classical Music
2
A Second Look at First Impressions

• Pepsis Challenge and New Coke
• - The story of New Coke is a really good
  illustration
• of how complicated it is to find out what people
  really
• think. How and why?
• - Why were blind taste-tests not very predictive
  of
• purchasing behavior?
• - Why did Pepsi win most taste-tests, but never
  took
• over Cokes market-share?
• - What, then, was the mistake that Coke made?
• The role of emotional branding
• - (human beings inherent tribalism)
• - brand experiences and loyalty beyond
  reason

3
Listening with Your Eyes The Lessons of Blink

• The limits of conventional decision-making
• screened auditions, women (Abbie Conant) and
  training our rapid cognition

4
Group Coordination, Traffic Incentives

The point of congestion pricing is to get people
to coordinate their activities better by
balancing the benefits they get from driving
against the costs they inflict on everyone else.
5
Group Coordination, Traffic Incentives

• Incentive structure is key
• London 20 reduction in traffic, 40 increase
  in car
• speed, increased use of public transport
  and biking
• - The flow of traffic is now a better reflection
  of the real value
• that people truly place on driving.
• Mexico City last number of license plate days
  of the week
• - What happened?

6
Group Coordination, SARS Incentives

• SARS shows the power of group collaboration, as
  contrasted with science
• and epidemics from previous eras
• No one was in charge, yet coordination was
  abundant group research projects proliferated
  rapidly, there was an effective division of
  cognitive labor, as well as diversity and
  independence of individual participation.
• Like the Iowa Electronic Markets (IEM),
  scientists are driven more by recognition than
  financial profit and the inherent competition
  involved (absolutely key) ensures a steady
  infusion of diverse thought.
• This competition provides an inherent check on
  flawed ideas, since showing flaws in other
  peoples work is one way to make a name for
  yourself.

7
Failure of Group Coordination, NASA Incentives

• NASAs Mission Management Team (MMT) and the
  Space Shuttle Columbia object lesson in how
• NOT to run a small group
• Why?

8
Incentives, Group Decision-Making
DemocracyDreams of the Common Good

• Democracy often illustrates the superiority of
  group decision-making.
• With the aggregating effects of American
  democracy, voters are not as narrowly
  self-interested as everyone thinks.
• Evidence?
• Strengths of Democracy?

9
Individual Decision-Making, Variability and the
Extent to Which We Really Know Ourselves

• Howard Moskowitz