theory

There's no easy route

Standard economic theory envisions individuals endowed with perfect information, complete trust, and consistent preferences while possessing a complete understanding of their utility functions. In other words, they possess clear knowledge of their desires, their willingness to invest, and a deep-seated trust in their potential sellers. Many economic models build upon these foundational assumptions, and these models operate under the notion that the sole avenues to enhance a product's appeal involve reducing its cost or expanding its functionality. I think that we have allowed economists to create a culture in which business makes the same assumptions that dictates the only means to enhance value is through efficiency improvements. However, reality teaches us otherwise, value creation can also arise through the establishment of trust, by telling a story which frames the price of the product or function of the product in a new enlightening and more motivating way or selling it in such a way that fosters confidence in the consumer's decision.