Mar 8, 2018 - Dhirendra Singh Makes A Fortune Selling Juice To Indian Small Towns And Villages

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from TradeBriefs FMCG Daily Newsletter

Sree Vijaykumar

From the Editor's Desk

The end of rational economics
We are finally beginning to understand that irrationality is the real invisible hand that drives human decision making. It's been a painful lesson, but the silver lining may be that companies now see how important it is to safeguard against bad assumptions. Armed with the knowledge that human beings are motivated by cognitive biases of which they are largely unaware (a true invisible hand if there ever was one), businesses can start to better defend against foolishness and waste. The emerging field of behavioral economics offers a radically different view of how people and organizations operate. In this article I will examine a small set of long-held business assumptions through a behavioral economics lens. In doing so I hope to show not only that companies can do a better job of making their products and services more effective, their customers happier, and their employees more productive but that they can also avoid catastrophic mistakes. More here

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