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Priceless

The myth of fair value--and how to take advantage of it.

Artificial Intelligence
Why AI Lies

William Poundstone on October 27, 2023

Chatbots can produce untruths, math errors, and complete fabrications known as hallucinations. The problem is not easily remedied, as truth is contextual.

Chatbots can produce untruths, math errors, and complete fabrications known as hallucinations. The problem is not easily remedied, as truth is contextual.

Artificial Intelligence
Reality Catches Up to the Turing Test

William Poundstone on October 19, 2023

Alan Turing proposed conversational ability as a test of computer intelligence. Today’s chatbots have the gift of gab, but also show the fallibility of the Turing test.

Alan Turing proposed conversational ability as a test of computer intelligence. Today’s chatbots have the gift of gab, but also show the fallibility of the Turing test.

Artificial Intelligence
Horse Sense About AI

William Poundstone on October 11, 2023

The “Clever Hans effect” is the tendency to attribute human intelligence to animals. It may affect our experiences with AI chatbots, too.

The “Clever Hans effect” is the tendency to attribute human intelligence to animals. It may affect our experiences with AI chatbots, too.

Behavioral Economics
Super-Sizing the Price

William Poundstone on August 11, 2010

Pity the summer tourist in New York, the city where everything is more expensive than it is back home. Last month, Serendipity 3, a popular New York eatery, introduced a $69 hot dog. It's further proof of how relative prices are, and how easily we're manipulated.

Pity the summer tourist in New York, the city where everything is more expensive than it is back home. Last month, Serendipity 3, a popular New York eatery, introduced a $69 hot dog. It's further proof of how relative prices are, and how easily we're manipulated.

Behavioral Economics
Why No One’s Saying What Charlie Sheen Got

William Poundstone on May 18, 2010

At the moment, the biggest secret of TV is how much money CBS had to pay Charlie Sheen to continue his hit sitcom, Two and a Half Men. The network knows the psychological effect of a big number. Just look what happened to NBC and Jerry Seinfeld.

At the moment, the biggest secret of TV is how much money CBS had to pay Charlie Sheen to continue his hit sitcom, Two and a Half Men. The network knows the psychological effect of a big number. Just look what happened to NBC and Jerry Seinfeld.

Consumer Behavior
Monetizing the Male Ego

William Poundstone on April 28, 2010

Men can't resist paying a premium for "Extra Large" condoms. The condom industry has made a science of converting inches to dollars, but "extra large" is mostly in men's heads.

Men can't resist paying a premium for "Extra Large" condoms. The condom industry has made a science of converting inches to dollars, but "extra large" is mostly in men's heads.

Behavioral Economics
Cash and Calories

William Poundstone on March 23, 2010

Obama's health care bill says restaurants must post calories on the menu. "Nanny state" intrusion? Not according to the restaurant industry, which supports the new regulation. The reason may have less to do with waistlnes than the bottom line.

Obama's health care bill says restaurants must post calories on the menu. "Nanny state" intrusion? Not according to the restaurant industry, which supports the new regulation. The reason may have less to do with waistlnes than the bottom line.

Behavioral Economics
Sticker Shock Hits Disneyland

William Poundstone on March 19, 2010

When Disneyland opened in 1955, admission was $1. Today it's $72. Walt Disney was a pioneer of psychological pricing — but can anything persuade families to pay today's theme park prices?

When Disneyland opened in 1955, admission was $1. Today it's $72. Walt Disney was a pioneer of psychological pricing — but can anything persuade families to pay today's theme park prices?

Behavioral Economics
Curse of the $8 Blanket

William Poundstone on March 3, 2010

How can you run a business when customers hate you? Airlines are trying to figure that out. The real problem may not be the airlnes but human nature.

How can you run a business when customers hate you? Airlines are trying to figure that out. The real problem may not be the airlnes but human nature.

Behavioral Economics
Offers You Can't Refuse

William Poundstone on February 18, 2010

Don't think of an elephant! D'oh, you just did. As this demonstrates, there are some limits to "free will." A largely robotic part of our minds helps determine what we think about. Some tricks of psychological pricing exploit this. They present offers you can't refuse.

Don't think of an elephant! D'oh, you just did. As this demonstrates, there are some limits to "free will." A largely robotic part of our minds helps determine what we think about. Some tricks of psychological pricing exploit this. They present offers you can't refuse.

President Donald Trump
Does 9 Just Sound Cheap?

William Poundstone on January 26, 2010

From "invitation only" high-fashion web sites to the 99 Cents Only Store, prices ending in 9 have a strange attraction for value-conscious shoppers. A new study suggests that the poetry of prices can be as important as the math.

From "invitation only" high-fashion web sites to the 99 Cents Only Store, prices ending in 9 have a strange attraction for value-conscious shoppers. A new study suggests that the poetry of prices can be as important as the math.

Consumer Behavior
Maddest of the “Mad Men”

William Poundstone on January 17, 2010

Mad Men presents the advertising world as an exercise in moral ambiguity. That perception has much to do with James Vicary, ad man and con man. He's more relevant than ever in the age of Google.

Mad Men presents the advertising world as an exercise in moral ambiguity. That perception has much to do with James Vicary, ad man and con man. He's more relevant than ever in the age of Google.

Consumer Behavior
Pricing the Snuggie

William Poundstone on January 7, 2010

The Snuggie, the "blanket with sleeves," may be an Irony Belt punchline, but somewhere, in a less jaded America, 20 million have bought it. Like other infomercials, the Snuggie pitch uses some powerful tricks of psychological marketing. Next to that, logic doesn't count for much.

The Snuggie, the "blanket with sleeves," may be an Irony Belt punchline, but somewhere, in a less jaded America, 20 million have bought it. Like other infomercials, the Snuggie pitch uses some powerful tricks of psychological marketing. Next to that, logic doesn't count for much.