Chapter
The Pepsi Billion Dollar Giveaway
11:21 - 16:14 (04:53)
A kid wanted to buy a Harrier jump jet from the Pepsi Billion Dollar Giveaway promotion but realized it’s not included in the prizes. He then recruited his father’s rich friend to help him buy Pepsi cans in bulk hoping to find a winning tab under the bottle cap that would enable him to get the plane. The story highlights how people spend a lot of time and money searching for the perfect gift that sends the right signal, especially during the holidays and special occasions.
Clips
In this podcast episode, the speaker discusses the signaling value of gift-giving and how the gift we choose to give sends a message to the recipient.
11:21 - 12:22 (01:01)
Summary
In this podcast episode, the speaker discusses the signaling value of gift-giving and how the gift we choose to give sends a message to the recipient. He uses an example from Seinfeld to illustrate this point.
ChapterThe Pepsi Billion Dollar Giveaway
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
A kid realized that there was a Pepsi commercial claiming they were giving away fighter jets, but upon close inspection, the offer wasn't real.
12:22 - 15:13 (02:50)
Summary
A kid realized that there was a Pepsi commercial claiming they were giving away fighter jets, but upon close inspection, the offer wasn't real. He found a way to bulk purchase Pepsi cans to earn points and “buy” the Harrier jet at a 95% discount, and eventually brought it to his school in the commercial's final scene.
ChapterThe Pepsi Billion Dollar Giveaway
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
Mixed signals can create confusion and lead to unintended outcomes in behavioral economics.
15:13 - 16:14 (01:01)
Summary
Mixed signals can create confusion and lead to unintended outcomes in behavioral economics. For example, if someone says they value quality but incentivizes quantity, the result may be a focus on quantity over quality.