Thursday, October 01, 2015

The core of good business idea

The core of good business is to sell something people need. But successful business is the one that manages to artificially create that need.
The comic below illustrates how this works. Coincidentally, this whole concept is described in the latest book by Nobel laureate Robert Schiller and George A. Akerlof, Phishing for Phools. The point being the quesion whether the artificial creation of this need is ethical.
For reference, here is a description of phishing for those not familiar with the concept.
This is well portrayed in the movie The Wolf of Wall Street with the example of selling a pen. How to do it right, and how not to do it.

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