Why People Pay More For Someone They Trust

Añadido: 2026-06-02

[00:00:00]If you're buying a second-hand car, imagine two scenarios. You can buy a second-hand car from someone who's known your dad for 7 years and who drinks in the same pub as your dad. [music] And he lives in a house not far from your dad.

[00:00:09]That guy could have filled the gearbox with sawdust. But if he's done that, he takes a reputational hit. He's got to face your dad, the other people in the pub, and accept them all knowing that he's basically ripped off this kid who's just bought a car, who's a son of a friend of his. Equally, you buy the same-looking second-hand car for 50 pounds less from a bloke called Dave who lives 200 miles away and all you have is his mobile mobile phone number, probably for a pay-as-you-go mobile phone. How confident do you feel that? Would you pay more to buy the car from your dad's friend or from the guy called Dave? I think you'd pay more, fair? The mafia, by the way, one of the reasons mafia are family and they have [music] all these mechanisms, it's an it's another way of doing it, with the threat of violence rather than the threat of reputational damage. Someone who's famous is patently [music] in business for the long term.

[00:00:50]Someone you've never heard of may be just trying to make a one-off hit. In game theory, the one-off hit is totally different from the repeat game. The strategy you play [music] in a repeat game, you do a good job by your customer so they come back. If you're just trying to make [music] a quick buck, you make as much money from the bastards as you can and you don't care what the after-sales effect. So actually spending money up front on advertising, branding, and fame is proof of long-term intention. [music]