Economics

If you benchmark on everything, you simply become more similar to your competitors and move into a red ocean space which is highly, highly, brutally competitive. There's only room for one, maybe two at most, cost-cutting businesses.

Vice Chairman of Ogilvy & advertising strategist and behavioral economist

The miracle of capitalism is that if you have a central government trying to solve something, it will come up with one averagely optimal solution for everybody. And capitalism will come up with 10 different solutions to the same problem.

Vice Chairman of Ogilvy & advertising strategist and behavioral economist

Warren Buffett had a phrase I really liked: You want to give your kids enough to do anything but not enough to do nothing. I set up a plan to create wealth for them—and I wildly overshot that.

The most important thing to me is that wealth has allowed me to live a full life, rich with experiences. I see wealth more as a means to experience than a way to acquire things. It has also given me control over my own time.

The idea of selfish philanthropy is a push against the notion of philanthropy as simply 'giving back.' That phrase implies that wealth was accumulated by taking something from society. But if you've built a successful business, you've contributed to society—you don't owe anything back.

Status often has what's called an accumulative advantage property. If you get just a little bit of a head start, you can end up racing far ahead. So you end up with very small differences in quality or merit that get amplified over careers or competitions, eventually becoming very large differences over time.

Materials move much more easily than knowledge. But when people mistakenly believe that the material is the binding constraint, they tend to come up with these bone-headed development strategies. Silicon Valley didn't specialize in silicon transistors because there was a lot of sand nearby.

Director of MIT Media Lab; expert in network science and complexity

We have to get out of this 'tax to spend' mentality and think about using resources to create investment funds that support local businesses, while also expecting to get something back as those businesses appreciate. Those are very different mentalities.

Director of MIT Media Lab; expert in network science and complexity

There is an honest trade-off between labour market protection and learning. If you have an extremely static labour market—like the high protection laws in France or Spain—you get stability, but you sacrifice learning. There is less transfer of knowledge because there is less reallocation of people to tasks or teams.

Director of MIT Media Lab; expert in network science and complexity

I think both examples share one glaring mistake. They overlook the fact that even though knowledge diffuses, it is also agglomerative—it tends to concentrate. When it comes to the growth of knowledge, you need to double down on the capacities you already have; you want to build on cities that possess a foundation.

Director of MIT Media Lab; expert in network science and complexity

A model that's really strong at mathematical reasoning is likely to be strong at coding. And a model that's excellent at both math and code is often very good at analysing the nuts and bolts of legal reasoning as well. The third and deepest reason this matters is the ability to bridge different levels of abstraction. All of these domains involve multiple layers of abstraction, and the ability to move fluidly between those layers is likely to be extremely commercially valuable.

What the 1% of SMEs in a region that can really grow desperately need is local risk finance. We can think of this as venture capital. But we need venture capital that will work for SMEs, and that means it's got to be locally based. We've got a lot of venture capital, but it's nearly all in London and the Southeast.

Economist specializing in poverty, conflict, and development in Africa

What happened was that people saw their place going down while London was booming. It's not countrywide; it's not that everyone in the country is poorer. London's doing fine. So people ask: why are they not doing fine when London's doing fine? They start to blame each other.

Economist specializing in poverty, conflict, and development in Africa

Milton Friedman had a postulate about this. He got a Nobel Prize and all the rest of it, very fancy. But as soon as you interrogate this postulate, it's manifestly rubbish. The postulate was that capital would move into a region hit by an adverse shock. So, Sheffield's steel industry collapses. 'Oh well,' says Milton Friedman, 'that means wages are cheaper, property is cheaper, and so capital will move in.' Which sounds fine until you think about it for more than two minutes.

Economist specializing in poverty, conflict, and development in Africa

When the Sheffield steel industry collapsed, incomes collapsed, and so demand in the region collapsed—businesses of all sorts, not just steel but shops and businesses that sold things to consumers. The consumers were poorer, and so businesses started to fail. Investment didn't flow into this region saying 'oh good, a depressed region.' It flowed out to the places which were booming.

Economist specializing in poverty, conflict, and development in Africa

Our philosophy has been about trying to control the entire customer experience. A lot of people, when they think about branding, they think about advertising and marketing. But we actually don't do any advertising or marketing. Instead, we invest all of that money into the customer experience, and then our customers do our marketing for us through word of mouth.

CEO of Zappos & Pioneer of Company Culture & Happiness