« Freakonomics Radio

178. How to Save $1 Billion Without Even Trying (Rebroadcast)

2015-10-22 | 🔗

Doctors, chefs, and other experts are much more likely than the rest of us to buy store-brand products. What do they know that we don't?

This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
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If you'd like to listen to free economic radio without ads the place to do that is sticker premium five dollars a month and you can get a free month trial by going to stick your premium dot com and use a promo code freak. You also get access to all our bonus. Episodes and you'll be supporting our show to that sticker premium: dot, com, promo code, freak thanks, hey packets listeners, you are about to hear an episode from our archives. It's actually won them popular episodes with ever put out. It's called how to save one billion dollars without even trying. Now, I'm not sure why this episode was so popular. It may be that people just really really liked it or it may be, as my friend James Altvater often says, that a time you put anything on the entire webs with a dollar sign and the word billion in the title, everybody in the world immediately stops what they're doing and looks at because everybody's trying to get rich. If that's the case, if you only came here for the title of the show, I hope so
enjoy it, even if it doesn't make you rich. We recently held a peanut butter and jolly sandwich tastes test here that w and my see where we record our show so guises. For an episode about premium brands versus store brands and what you see is two rows of sandwiches, one on a plane, wait play there and one on the bordered play there. Ok, and the sandwiches were made with either the premium scheme a creamy and the smokers strawberry preserves so any not our geezer verbal waiver, if you die. Not our problem is a lawyer and it'll be fine good boy and beat the store brain Sandwiches are shop, bright, peanut, butter, creamy, they put their adjective last butter, creamy an arm, strawberry preserve shop rate and the bread is identical,
it's bimbo! So really all we want is for you to eat one of each and which one you prefer and why pattern plate is the one tis nuttier more honest stuff in this one, yet no, more texture, more texture and therefore better. Therefore, worse, Alexander Texture, someone said better, I liked the border and I thought it was the Ben. I like the border, one for whatever Isn T just tasted slightly more delicious, and it makes me think that was escaping So how would you feel collectively, if I told you that they were just all the same and they were all the generic and that there is no difference at all on the plate or call you a liar and you'd be right, so ok,
I'm happy from the w and my see this is free. Mix, radio, the pine camp that explores the hidden side of everything? Here's your host Stephen Governor you try not to lie too much around here, but yes, in the interest of science, we did tell a lie that the peanut butter jealous amateurs- they were all made but the same store brand ingredients. None were made with the Skippy peanut Butter or smokers preserves and yet, as you could hear, most of our tasters were pretty sure the two sandwiches work. Quite different and they knew which one they preferred, which one was better, even though
neither of them was better now. Why do we do this? The idea was to get all of us thinking about that consumption tree. As we make how meaningful they are for us as individuals and for the overall economy. We have a couple of economists to walk. Through this time, Jesse Shapiro, I'm unemployed, four economist, I think that's the immense that damn What do you do it? I am professor of economics at the universe. You shall go with school of business and a visiting professor of Economics at Brown University, very good gang meant, at Gensco I'm also a microeconomist. I'm a professor of economics set the University of Chicago Booth School of business, and I want to talk to you today about a working paper called. Do pharmacists by bare bears in the Ass
informed shoppers and the brand premium. So, in order to get that very dramatic question out of the way, do pharmacists by bear or are they more likely to buy the generic aspirin pharmacist dont fibres Zizi, ok and what about going Side of the domain of pharmacists and headache medicine, what about other experts in their domains and do they too? to buy store brand versus premium brand, while, first of all, if you look at health experts outside of headache remedies. You see this pattern and a lot of products, especially medications over the counter medications. You see that people who are informed about the products and who are occupational experts, There were more likely to buy store, run across a lot of categories outside of the health domain. We took a look at pantry stay things like table salt, sugar and it turns out that shit, third, considerably more likely than nice
stu by storm ran, saw sugar begging, soda things like that. Ok. So this is the kind of research that I think is of great interest to most people and yet would lead many of those most people to say. Wow. Really, this is what economists at universes Chicago spend their time doing is forgetting pharmacist. There has been so let's Let's assume that, beyond that very narrow question, there is a great broad answer or great broad line of thought that you're trying to pursue what? What are the questions? You're trying to answer? Really when you do a study like us, he I think I think, that's a good way to introduce it, because this is a paper we think of us. Some really simple facts that speak to a big old and to us kind of important set of questions so that set of questions in the background, is what is advertising and branding and all this stuff accompany spend much effort on really about fundamentally about trying to
form consumers help them make good decisions, help them identify. What are the best products, so they can buy them or at the other. Extreme is alive, people have speculated it really about trying to confuse people cause them to mistakes convince them that stuff. That really is not any better, is and get them to pay a lot of money for so that something people. Argued about for a very long time? We have some clothes in the paper from fifty sixty seventy years ago, people speculating in others this like branded soap, flakes that seem to pay a lot for instead of the really simple basic soap flakes, and both of them are just soap flakes, and so you wonder: why are people paying for this? Is it because there's something special, the expensive ones, or is it just the people are confused and having now these really large data sets where you can actually go, look at lots and lots of people's actual purchases, as well as their occupations and various other indicators of how sophist
they are. Can it gives you knew traction on an old question? Okay, so let's say you by this argument for why this kind of question is meaningful, assuming it is, how do you go about answering it? So I think staffing backs I'll. Tell you in a minute how we did it, but stab me back. I think what we want to do is we want to fight. Somebody around the grocery store, the drugstore and every time they make a decision between, say, store brand. You know CV aspirin, aspirin or national brand. So Bayer Aspirin, we wanna ask without decision indifferent. If they knew more. That's really the question we won ask if we want to know that for every dial in every store for every sharper, and that's a very tough question to answer. We don't have as you know, hypothetical other, more informed shop or standing next to them, saying what they will do, so we need to go and find those counterparts in the data so
we started with the dataset called the Nielsen Home Scan panel, and this is data set where people basically we have a barcode scanner at home and they core and all of the purchases they may get. Supermarkets ad Ugh stores at Club stores admin Martin, I stores all the main color retailers, and that was good. It, forgetting a measure of you know the average a person's purchases that we need to and awaited to identify these kind of informed counterparts for everybody and so the way did that, yes, we ran to cost. Surveys, in collaboration with the assent of the home scan panel, so we basically went out to them and asked them some questions, ask people what was their occupation, so what do they do for a living and that we also give people a quiz? We said what active ingredient in Tylenol. What's the active ingredient in advance- and we gather multiple choice does to see how they did and so what we try to do that is we try to find but who have had similar age home,
ownership live in the same geographic area, shop at similar kinds of stores by different, how much they know about the rocks at their buying. At from that, we can trust construct. You know a kind, data driven answer to the question. How different would these choices be? If people were better informed and a thing really important is that that data set is really really big, so in a relative to a lot of serve. Isn't things than yours in homes gown panel has in tens of thousands the people in it and That means that once you zero end on a particular occupation like pharmacists or chefs, you still have lost. Those people in the data, so sandy other traditional sources? One might have had services that ass consumers what they buy. It would have been hard to use for this because, at the end of the day you might end up with you know three pharmacists and six traps in and you couldn't really figure it out. I say let some talk that headache, medicine aspirin further. While you said that there would be some questions asked. Multiple choice can have how many questions were there.
Can you recital will let me in the listener play along to see if we have any idea we're talking out. I think there are five questions and I can ask you the question, but I dont know that I'll be able to remember all the multiple choices. Let me give it a try, okay, so what the active ingredient in Thailand, or is it a single cell? So I guess it be a seat of benefits in seeing the proxy sodium ordeal Ibuprofen I see the benefit here. Regulation is now that you're very much euro area sharper than that's all. That would put Me informed realm already, just one that that's one out of five, and so then I give you can actually wants even give us one more ok this I'm not gonna. Give you the multiple choices that this can ask. What was the active ingredient? Admiral those ibuprofen You got what I got even in your leave. I could do a leave if I had to govern
you'd, be five, that's an approximate something or other authority. I know my pain. Medication fellows, among other choices, had a couple of you know they were there. Like sodium chloride or something was tossed it. There are a couple of other, not so headache, remedy kind. Things tossed into the multiple choices to mix things, but ok, so those are the kind of questions you're giving too whose separate out how expert someone is in their domain correct, not how they know something about the product correct, and we asked these questions of everybody and so we think of them as separately from occupation separate measure of how much people know about these products, House, instigated. Are they it's gonna, be we think it's gonna be. Correlated with lots of general knowledge, and instigation? Not only do you know these active ingredients per se but somebody who knows he's active ingredients like you is also like
pretty smart, talented, sophisticated person who knows a lot about lots of different kinds of things in the idea being. If you know the active ingredient the name brand thing and then you look at the store ban thing, you say: oh active ingredient is identical, you think! Well, I should buy the one. That's a third, the price right. That's that's the connection we're trying to make here right basically act, so I think that their sort of a simple version of this and then a slightly more subtle version, the simple version is tired: and see vs brand are both a sea diminish in? If you realize You would know they're the same thing, so you should by the cheaper one that sort of the simple story them worse. A story is even if you know that the same active ingredient. You might still be kind of worried about a variety of things. You might wonder: do they have different coatings? You might think her that these store brands are manufactured in India, and maybe these plants in India are not so good. I heard that there is like recall these products once upon a time when you know think, went wrong with the manufacturing and they weren't safe. So you could come up with a whole.
Two reasons why, even if they're the same giving greedy, you might still want to pay a little bit extra for the fancy or think maybe it safer as may be. It has this quoting the makes it work better and so there, above and beyond, knowing that they're the same active ingredient, you need some knowledge and sophistication to be able to assess, are all of those other as things I should be worried about, are they really different? First of all and if they are friend should I care and should I care to the tune of three dollars. Every time I buy a bottle other stuff, so we think of these in knowledge, measures is picking up both. Do you know the fact, and also probably their correlated with r? U sophisticated enough to be able to make good judgments about those other characteristics,
and what can you tell us about the reality of that for all those for all those factors that you just described? I knew some people say that, with generic pain, relief medicine, they worry that the absorption rate, or maybe the breakdown re unknown. It's called in the body, is different than that of the premium brand. So do you know much about or what can you tell us about the actual physical difference between a premium in a generic pain relief pill harnessing completely for but if you go to the FDA website, they'll tell that store, Brandon National Bran over the counter medications have exactly the same strength and composition and safety and efficacy as one another, but this is, but still, I think that this is one of these topics that people get very worked up and so in going around and talking about this paper, we ve met many smart academics. You know people whose judgment we respect, who have a different. You have it and take no they're. Really I buy Adele, and there really is a good reason for that, and so on
is fair to say there is at least enough controversy that people can read the evidence different ways. There are certainly studies of prescription medication. Example where it was shown that these absorption rates would differ or that the different coatings that they had actually affected efficacy, certainly has been recalls and examples of safety problems. It's not at all clear whether those are any different further in Thailand has had recalls the brand. So it's not clear how different they are, but I think, from essentially talking to people. There's enough murky us just enough marking us in the fact that people could come to different conclusions and so that, in a way that kind of where the study comes from is like. We could have just had this debate based on direct evidence and first principles, and what about the absorption rates? We think of this is, wait a kind of sidestep all of that and say well whatever all that stuff is, let's see what the smart people do when they make purchases,
themselves were sort of assuming whatever differences do or do not exist. Doctors and pharmacists know more about them than people who are not doctors and pharmacists, so we can learn from their choices when their shopping on their own dime, what they think? Ok. So what do the smart people do in the of aspirin were headache, medicine or something like that. Do the pharmacists by the name brand or do they buy and take the generic, thereby enlarge, take the storeroom. So, in the context of headache remedies a ninety two percent of the headache remedies pharmacists, buyer store brand, and we see that. Very consistently across other health, Iraq patients, nurses, doctors and so on there all by way more store brand than the rest of us? As for the rest of
about. Seventy four percent of non pharmacists by store brand headache remedies compared to ninety two percent, for the forms is so big difference. Coming up on for economics, radio, an economist lake, Steve Levitt, prides himself. Thinking with his brain rather than his emotions, so does the supply to personal consumption hours by the most expensive gothic, as if there is even the tiniest stamps that develop magic in there I want them, and what about Jesse Shapiro, Matt gents go did study generics make them by more generics. I think I promise by a little more now than before, the study, not so much because of anything I learned from a study, but more because I think I would just feel hypocritical, buying lining their readiness neighbour,
and one more thing we took our phoebean J T test out on the streets of New York City, but instead of offering to identical plebeian J sandwiches, we offered to very different versions of radio number one: commercial, radio, you're, crazy, Leyla hates. When someone comes down on them and number two public radio Americans love marriage, they met. Earlier they marry more often and more of them get married and that we asked people which one they preferred number two number? Two. Second, one for sharing a second ones, informative would definitely prefer public radio it's going at a pace or I can actually process the information number one was people screaming at each other with
aiming at the woman. They were screaming at her, the guy commercial ones like so inflammatory and like such a share, is just screaming and screaming and screaming content in the public radio arm, like oh, I m sure, stared at even learn more from a lot of that public radio. We were shocked, shocked to learn that public radio one almost unanimously believe you're, not and, unlike other fancy, brands public radio projects like freak, not mix, radio or free, but
You know I'm going next, don't you making them is not free free economics. Radio is produced by W and my c, a public radio station in New York in public radio stations are funded by listener donations. So we need you to help us by making a donation to W. I see for what it's worth you'll be automatically entered to win a trip here at our studios and have lunch with me in the freak mammoth radio crew. You don't even have to donate to be entered in the contest, but, of course we hope you will just go to free economic stop come and hit. The donors can also donate by texting. The word freak two hundred and sixty nine eight hundred and sixty six simple, formal pop up there. This contest is only running for a couple more weeks, so don't miss out again go to Freakonomics dot, com or text. The word freak two hundred and sixty nine eight hundred and sixty six to enter a contest to come, have lunch with us in New York,
Eve, peanut, butter and jelly will be on the menu today, we're talking with two economists about how experts tend to buy cheaper store brand. Seems like aspirin or kitchen staples, and why up that, presumably because they know enough to know that the store brand items are just as good as the more expensive name brands. So you might think that economists behave in the same way. Economists like Steve Levitt, my for economic, friend and cooperate so Levitt. What about you? Are you a slave to name brands? What are some products at you? Only
I named brand of it it's funny, a little bit into the magic, and so when I M at the store and king, at branded or unbranded. I honestly each time. I look at it and I ask myself very particular application. Do I think there could be magic in the brain? sometimes you haven't thought about it and and then probably follow any logic. But you know I'm not very pray sensitive anyway. So if I think that even a little chance that there's some special magic built into it, I'll pay double for just even the whiff of magic up it does so So I'm guessing the realm in which you suspect this magic may apply would be golf falls. For instance, we always by the premium Bren Gaffer hours by the most expensive golf. Because if there is even the tiniest answer this that is a magic in their then am. I want them. That just go and Jesse Shapiro meanwhile argued that a lot
of that brand name. Magic is an illusion which means that a lot of people are spending a lot of money they probably dont need to. So what does that add up to here again is Jesse Shapiro we look at six different headache, medicines. You know Aspirin Ibuprofen proceeding and so on. We estimate people are spending about eight billion on those alone every year in their other. You know how to remedy is out there and I think we find in those categories it if everyone or to act like a pharmacist, people spend better one or two billion dollars lass every year, and how should we the populace? of that one or two billion dollars, that's one or two billion dollars that would not be going from individuals, pockets in to corporate pockets and then distributed to their friends, families and shareholders, etc. Is that oh,
pay for the economy that people are over spending on premium brands, because it something that they want in there. Just you know revealing their preferences and even if it's a placebo effect hey you know, people effect is not nothing or is there in your view, as economists just a waste of time and money, I mean it really depends on whether you accept that people would like to act like that there is an pharmacists act and they just don't know enough to do it, if you take that premise that people are making a one to two billion dollar mistake. If you want to say that believing that Brandon lessons or batter, allows them to work better and reduces headaches more and so on. Then I think it's much harder to to make their case, and this proves your paper proves or argues more broadly
what that we are susceptible to marketing and advertising to a degree that we shouldn't be that we are in for co, informed by things that aren't really very informative that we're just gullible generally when it? What is it argue, I think, to answer that question: it's good to take account of this full set of products that we ve got. So we start with this case study of headache remedies where we find these very big effects. We look at other over the counter medications where we see similarly big effects, and we look at these pantry staples like sugar and salt. Where look chefs purchases we see similarly big effect so for all those categories of products the take away Inclusion is yeah. This this seems to be a mistake and Buller misled either by admiral.
Using or by just absence of knowledge that it would take to make good decisions, but we also go look across a much broader set of products in the supermarket. You know everything from soft drinks to frozen entrees too all kinds of their products would be in the supermarket and and what we see in that really big said as there actually lots of product categories where the experts don't differ, systematic in their purchases and even a couple of categories where experts like chefs seemed to be more willing to pay for brands and so across all those categories It looks like you know. Maybe there are many where the brands are really are better and so that big sure I would say is we know that look at the products where we would have been the most worried that there aren't any differences, headache. Remedies are really chosen to be, if there's any product categories where you would have thought that these things cannot possibly be that different, it would have been that
So when we look at those places, we see yeah, there's some big mistakes, but were also very far, the situation, where all brands, her a mistake go? We're all brands are about misinformation and so one think about it is on average, in the decisions consumers face. Brands typically are better where there are differences across products. Indifference, across brands and the Eurystheus that yeah. I should probably pay little extra to go with a brand that I trust, isn't so bad. That's like a pretty way to make decisions on average. The problem is its a good jurisdiction. Someplace It's not a good arrested in other places and, like a lot of things, people apply the same rule to broadly and end up making mistakes. As a result, I'm curious what you ve heard from advertisers or marketers about your research, I mean, on the one hand, you researches this massive compliment to them: you're saying to them that could take two identical objects and make one three times more valuable.
By design packaging and writing great jingles, on the other hand, you're, saying: oh everybody who responds to you're fantastic work is kind of an idiot. What were fortune enough to have two marketers as co authors on this paper, one of our colleagues at Chicago J, P, debate and Bart Brandenburg, whose a marketing professor in the Netherlands, so you know we get it, we get there you put on this. They don't seem to be walking around incredibly depressed, at least as far as we could tell, but their professors of marketing they're not meddle with money or by selling products right fair enough now, but there are teaching their students how to market products, and I think they thinkin- and I think that you know the data are supportive of this- that there are a lot of categories where you no more ever really, as you know, helping people- and I don't think, there's anything in the paper that really disputes that it's just that there are. You know there's a subset of categories where it looks like people are overpaying for France, Jonathan you have to remember is you know. Pharmacists, take, take pharmacists and
there's by headache, medicine in the case of aspirin than I shall brand costs, maybe five times propel, what the store brand costs so out of five ex price. The experts are generally vice or run me. He had a two x prize are one point: five express you'd get some of those doctors and pharmacists buying the national run. You know we don't know for sure. I like to think about thought experiment. Imagine that you walked into a supermarket walk in a Walmart are locked in a sea vs, an inch out of all these fancy brightly coloured branded packages in everything was just in white boxes with, like black labels, stay what it was and you had no brands in the store and you tried to walk around and like figure out what to buy it, think that would be a pretty hard. Duration for most of us, it would eat like spend a lot of time trying to get your groceries. I think the brow Funds are serving first as Parker of Quality- second as it as a way to just make all of these decisions, we have to make every day easier and deploy.
Psychology to help us be able to quickly identify in and get what we want. I think I think there is clearly a lot of value. Produced there. The question is just you know, where is it more, whereas it less? Is it from exploiting the same mechanism that certain useful in many places too, to drive up their profits in in a small number of categories? I'm curious how this is change, your guys, consumption habits, especially if you have kids, especially when it comes to be no then flew or baby. You know allergy, medicine or anything that might give your kids are yourselves at an eye out, I mean I've. A lot of store, brightens tough. I think I probably by a little more now than before, he wrote the study not so much because Of anything I learned from a study, but more because I think I would just feel hip
a car vying lying at the direction is made, and I am more afraid of that, then I need any risks, if so around medication aisles pretty much by just yet store brand over the counter things and generic prescription things. Even for my kids, I think that was true before this paper. I don't think it's really change much. I think from my experience, I guess, was kind of growing up can Amelia where this mess, that your kind of a soccer if you pay, still thereby brands, was pretty pervasive and so something you see a little bit. Nor did. I think there is a kind of generational thing where twenty two years ago, generics actually weren't, very good, and so maybe you, that forward, but this seems like, for my own personal habits as something that that has made a huge different? Yet that's a great point. I guess it
nice to know from you guys not that this is your realm. But how is a shop to tell the difference between a store brand generic in just a piece of junk Sometimes a line is pretty thin right solving all they need to do go get access to the Nielsen Home Scan panel and do a survey of a bunch of expert us in just run some regressions and then it's pretty easy. The easiest thing in the world easier sponge, a lazy civilians there. Why? If, as you say this is an area of expertise, but my senses- that store brands have gotten a lot better and that no major retailers now invest a lot in the supplies. For their store brands and trying to make sure that there is comparable as possible to the national rise side by side with them on the shelf. You look at data on trends in Austin, brand as a share of purchases just been going up tremendously started in the ninety nine he's really taking often as continue to do that. So I think, for most categories is this kind of in a supermarket and drugstore kinds of products it's pretty safe to buy
Your brand and an arrogant in cases where it's just a matter of personal taste like? Maybe you don't like the taste of the sore brown coal or something you know, then our thinking in Nicaragua, to tell you probably action by that guy. It's so trying us store Brand COLA and seeing how your taste buds like it compared to Coke, is pretty simple and cheapen is not much commitment to what about something we bigger. Choosing a college maybe have how someone supposed to assess the premium brand verses. Now, if I caught the generic college, but that the less premium brand of college I didn't the great question? We should do a survey and see where professors at I've seen Amber Anthology their kid. I was going to say I think the same methodology would deliver a very convincing answer in the opposite direction, that if you took the somewhat controversial view that college professor as our sophisticated and know what they are doing, which could be debated at some length? Definitely college professors at first
two universities also pay extra, send their kids to fancy universities for sure I, although that's a little bit of a self, reinforcing pat on the back right, because you know, if I'm a professor to fancy university, especially plainly it is. You know that that time, of university only is deserving of my offspring, so wrapped Bob an element of that and there is an element of that all these products because It could be that a chef doesn't want to have store brand baking soda there shall, if they want to have some fat making soda from ITALY or something like that, so that they can tell a story of a house sophisticated their tastes are for bathing soda. You might seen the same thing there and any. Maybe there is a little bit of that going on and it would be interesting to look at college. Professor. More generally, I bet it's the case. That fact multiethnic state universities are more likely to pay extra, send their kids. The ivy league universities than the average person so is lousy speck. Is that your
study that we should be looking for bankers, man, people read that this was your. Idea. Maybe you him. Maybe we should work on this together, thanks to Jesse Shapiro imagines go for their fine knowledge today and thanks to everyone who took part in our peanut butter and jelly tastes, test which you will recall, was really a taste trick all the people in jail was store brand and it seemed like everybody liked it just fine. We should say that not everyone was fooled by our taste trick. Did they take exactly the same way the scene Thank you, after the sandwiches which had been for those of you who buy anything which is everybody, what makes you buy a priest brand when there's a kind of store brand equivalent and when you buy
store brand and when you wouldn t, if it's a part, I'm feeling cheap sure in our, but like him it's gonna be on display, then I would probably bring something that was previously. I went in a heartbeat by generic medicine tasted and as a new father when you it set out to buy like coal medicine for your speech being six month old, you're going to I want to save the five bucks and I'm gonna buy the cheap one as a lawyer in the room, but I am going to say yes or no and that's because I feel like most of these products and progress. Peanut butter two's, mostly made in the same place my perception these things that just like one big extrude her that puts it in this jar in that jar, and it is the label them differently and so save the five bucks, even on my tab name, one thing: if any that you would never by a storm
and generic brand non premium Branford Orange juice. I'd never get the store brand of this very basic facial moisturize. Her that I pay like three times as much condoms, anything that touches genitals s. What else that touch your genitals? Would you not body I refuse to give you the end of Europe is John. It's what you think coming up next time on economics, radio boredom. I really feel like. I never really have time to be bored. I am bored because I'm lazy, the older you get the less board. You are because time just goes away. I really just want to be
is being born again, is boredom. Somehow an economic concept is perhaps an upside to boredom, and if I ask you to just sit there and think for awhile, we get bored and what will you do to alleviate the boredom? It turns out that astounding percentage of people hate sitting there thinking so much that will start shocking themselves. That's next time and for economics, radio for economics, radio is produced by double when my c and d nor productions, today's episode pulled from our archives was produced by David Herman, great resolve ski Bahrain, Lamb Gretta Cone, Susie Lichtenberg and Chris Bannon, with help from Simon Adler Jake how it merit Jacob and urban dungeon
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Egypt, five euro, the best while championships to end C h, championships for international basketball, federation, world cups and four olympic Gold medal. I would think that, in order to be the player you are, you would have to be a person who acted gets better under pressure rather than worth. Well, obviously, there are people who are known for heading big. Shots are known for playing, while in big gangs that exists for sure, but I think we kind of frame it the wrong way. It's not that you're gonna make nine at it It's that you might make three at a ten but somebody else's, making zero it's on whose most successful it's like who's, the most successful the least successful. That is people. Mostly admire. You can find it on your favorite podcast app subscribe now, so that you don't miss single episode,
hey there, Stephen dubbing again, one more thing, if you like for economics, radio, I think you'll also like the latest episode of people, I mostly admire the podcast hosted by my free economic, spreading co, author, Steve Levin. Here's what it sounds like a guest today, Sue bird. She collects championships she's for W Nba championships, five euro, the best, while championships too, and see a championships for International Basketball Federation, world cups, and four limpid gold medals? I'd like to talk about the economics of professional basketball, so the average player in the NBA made eight point three million dollars into that nineteen, and in the W Nba the average with eighty thousand is frustrating just now. I think. Actually, if you look at
Twenty twenty. Our minimum is now higher, but we all put in the same amount of work. So is it hard to swallow, knowing that somebody else's work is being rewarded at times by I live in reality. I understand business and economics. Some people look at us as like charity. They go will will help them out like an it in a terrible what sense, not unlike this business vestment way and we think do look at us as an investment immediately its talked about how we don't make money- and it's like fifty years ago in the nba- did either, but people are willing to make that investment get behind it and growing people I mostly admire you, can find on your favorite podcast app.
Transcript generated on 2021-01-30.