Dan Ariely on How To Win Big by Betting on Human Capital

Odd Lots


We're going to be speaking with den orioli his famous behavioral economist at duke university and he is also the co founder of a firm called irrational capital. This formed five years ago. And it pursues the idea of looking at a company's human capital factor as a as something that could drive out in an investment to. I don't even know. The human capital factor is. But i'm excited to hear Dan talk about it and what he's learned in five years dan. Thank you so much for coming on odd. Lots my pleasure to be here. Well first of all. I love the name irrational. I love the name irrational capital. It's perfect but i'm curious. What is the founding story of this the funding stories. I'm a university professor. I do research on few things but among them human motivation and in my academic career. I've from time to time. I go to company and i change things around by change bonuses. I tried to increase productivity. Tried to get people to care more about work in my my experience has been. It's always been very easy to come and improve what people do in increasing evasion because most companies. Just don't think about this very carefully if you think about age ourem. Hr is usually a function that is about legal issues in. I don't know training modules. Yeah but but it's not really a function that says let's just get the best out of people just think about. How do we motivate people. How do we get people to come happy to work. So i've been doing this for a long time and it's it's easy to do and it's it's it's helpful but when i met david my partner me whether i think that we could also look at something broader the consent of one company to time whether there's some way to look at companies see how they treat their employees how the employees feel about the company. And whether this could predict stock region. And i said i don't know what the answer. I don't know this the standard answer but we can try it out so we went on the hunt for data to see whether this hypothesis would albano not and it turns out it holds very

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