John List

They could have easily pivoted in that direction and said, we're going to do both and we're going to be diversified, but they didn't. When you look at many firms, they start doing something very different than what they become.

They could have easily pivoted in that direction and said, we're going to do both and we're going to be diversified, but they didn't. When you look at many firms, they start doing something very different than what they become.

Let's think about a pricing idea that I had, and this might be familiar to some of your listeners, and it's called left digit bias pricing. And the idea is that as humans, we engage in shortcuts. And when we see a number, we focus on the left most digit. So what does that mean? People open up their apps and say they get a price of $7.93.

Let's think about a pricing idea that I had, and this might be familiar to some of your listeners, and it's called left digit bias pricing. And the idea is that as humans, we engage in shortcuts. And when we see a number, we focus on the left most digit. So what does that mean? People open up their apps and say they get a price of $7.93.

Let's think about a pricing idea that I had, and this might be familiar to some of your listeners, and it's called left digit bias pricing. And the idea is that as humans, we engage in shortcuts. And when we see a number, we focus on the left most digit. So what does that mean? People open up their apps and say they get a price of $7.93.

And then they make a decision whether to take the trip in Lyft or in an Uber. Now, that decision is not very different than if they receive a price of $7.94. Okay. Because humans see 794 as the same as 793. Now let's say I change that just a bit and I give you a price of 799 versus a price of $8.

And then they make a decision whether to take the trip in Lyft or in an Uber. Now, that decision is not very different than if they receive a price of $7.94. Okay. Because humans see 794 as the same as 793. Now let's say I change that just a bit and I give you a price of 799 versus a price of $8.

And then they make a decision whether to take the trip in Lyft or in an Uber. Now, that decision is not very different than if they receive a price of $7.94. Okay. Because humans see 794 as the same as 793. Now let's say I change that just a bit and I give you a price of 799 versus a price of $8.

That's basically the same as the first example, but now because people are focusing on the seven or the eight, that penny difference makes a big difference in your decision. Okay, so I tested that idea using Lyft data and using Lyft, a big field experiment on Lyft. And I find that that one penny change makes a big difference. And I test it again and I find it's not a false positive. Okay.

That's basically the same as the first example, but now because people are focusing on the seven or the eight, that penny difference makes a big difference in your decision. Okay, so I tested that idea using Lyft data and using Lyft, a big field experiment on Lyft. And I find that that one penny change makes a big difference. And I test it again and I find it's not a false positive. Okay.

That's basically the same as the first example, but now because people are focusing on the seven or the eight, that penny difference makes a big difference in your decision. Okay, so I tested that idea using Lyft data and using Lyft, a big field experiment on Lyft. And I find that that one penny change makes a big difference. And I test it again and I find it's not a false positive. Okay.

I then go to the next step to say, who does this work for? It ends up working for everyone. Everyone has this left digit bias. Okay. Now let's go to the situation. You have business travelers, people travel in morning rush hour, afternoon rush hour, going to the airport. It works in all of those situations.

I then go to the next step to say, who does this work for? It ends up working for everyone. Everyone has this left digit bias. Okay. Now let's go to the situation. You have business travelers, people travel in morning rush hour, afternoon rush hour, going to the airport. It works in all of those situations.

I then go to the next step to say, who does this work for? It ends up working for everyone. Everyone has this left digit bias. Okay. Now let's go to the situation. You have business travelers, people travel in morning rush hour, afternoon rush hour, going to the airport. It works in all of those situations.

So now that's great because I can control in a better way using pricing in this behavioral bias. So I can scale that up and I can effectively impact people's choices because of this simple left digit bias rule, scalable, It works. It's not costly to do it. Because remember, we have to give you a price anyway. What does it matter if I give you a price of $7.93, $7.99, or $8?

So now that's great because I can control in a better way using pricing in this behavioral bias. So I can scale that up and I can effectively impact people's choices because of this simple left digit bias rule, scalable, It works. It's not costly to do it. Because remember, we have to give you a price anyway. What does it matter if I give you a price of $7.93, $7.99, or $8?

So now that's great because I can control in a better way using pricing in this behavioral bias. So I can scale that up and I can effectively impact people's choices because of this simple left digit bias rule, scalable, It works. It's not costly to do it. Because remember, we have to give you a price anyway. What does it matter if I give you a price of $7.93, $7.99, or $8?

So the supply side of it is great. And the spillovers are great too, because I can control whether you get it or not. So if I'm on the bad end of a market, what I mean by bad end is there are a lot more drivers than consumers. I can move consumption. Or if it's more consumers and drivers, I can move consumption.

So the supply side of it is great. And the spillovers are great too, because I can control whether you get it or not. So if I'm on the bad end of a market, what I mean by bad end is there are a lot more drivers than consumers. I can move consumption. Or if it's more consumers and drivers, I can move consumption.

So the supply side of it is great. And the spillovers are great too, because I can control whether you get it or not. So if I'm on the bad end of a market, what I mean by bad end is there are a lot more drivers than consumers. I can move consumption. Or if it's more consumers and drivers, I can move consumption.