Behavioral Economics: When Markets Clash with Morals | Al Roth

Horse meat, kidneys, prostitution. What happens when the things people want to buy, sell, and trade collide with what society has deemed “off-limits”? Nobel Prize-winning economist Alvin “Al” Roth joins us to explore the behavioral science behind controversial markets, from repugnance and social norms to black markets, incentives, and informed consent. We also dig into his work redesigning the kidney exchange market and how asking a different question can open up new possibilities for solving seemingly impossible problems.

Topics

[0:00] Intro and Speed Round with Alvin “Al” Roth

[9:21] What Is a Market?

[13:10] Repugnance vs. Disgust

[20:00] How Social Norms Shape Markets and Morality

[24:12] Do Laws Change Morality, or Does Morality Change Laws?

[28:25] Drugs, Hitmen, and the Social Support Behind a Ban

[34:23] Rethinking the Market for Prostitution

[38:12] Can Money Be Coercive?

[46:12] Redesigning Kidney Donation With Incentives

[50:42] What Do We Do When the Data Can't Change Minds?

[52:47] “Ought Implies Can” and the Limits of Moral Rules

[1:03:05] Grooving Session: What We Learned From Al Roth

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Music Links

Paul Simon - You Can Call Me Al

Leonard Cohen - I’m Your Man