Columbia University professor Michael Woodford, one of two Americans awarded the 2026 Nobel Memorial Prize in Economic Sciences, offered insights into the mechanics of pricing during an interview with NPR’s Ailsa Chang.
Woodford’s work examines the psychological factors that influence how consumers perceive value and cost. His research highlights that pricing is not merely a reflection of production expenses but is deeply intertwined with consumer expectations and market dynamics.
The discussion, part of NPR’s coverage following the announcement of the economics Nobel winners, explored how businesses can leverage these economic principles to better understand customer behavior in an increasingly complex marketplace.
So businesses can manipulate us by just changing what we expect to pay? That’s… kind of terrifying.
Loved this interview. It’s fascinating how much of economics is actually psychology in disguise.
This changes how I view every receipt. If expectations shape price, are we ever really paying for value?
Wait, is he really a Nobel winner? I thought that was just the usual suspects every year.
Finally, someone explains why I keep buying overpriced coffee. It’s all in the head, apparently.