How Companies Profit From Our Mistakes

CEOs make mistakes due to their own psychological biases - but they also profit from the biases of others. Some exploit investors by catering to sentiment - adding ".com" to their name during the Internet bubble or entering "hot" industries to inflate their valuations. Other exploit customers - selling cheap printers hoping they'll ignore the price of expensive toners, or offering mobile phone plans that profit from customers underestimating their usage. The talk shows how we can guard against such behaviour.A lecture by Alex Edmans, 11 MayThe transcript and downloadable versions of the lecture are available from the Gresham College website: https://www.gresham.ac.uk/lectures-and-events/profit-mistakesGresham College has been giving free public lectures since 1597. This tradition continues today with all of our five or so public lectures a week being made available for free download from our website. There are currently over 2,000 lectures free to access or download from the website.Website: http://www.gresham.ac.uk Twitter: http://twitter.com/GreshamCollege Facebook: https://www.facebook.com/greshamcollege Instagram: http://www.instagram.com/greshamcollegeSupport the show