The Voltage Effect with John List

PodcastFebruary 07, 2022
stickman conversation

You don't need to scale to billions and billions of people to be a success in life. You need to understand which of your ideas can make it huge and which are in the lower 10th. And if you're happy with that lower 10th, great. You have the correct expectations.

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Intro

In this episode of the podcast, Brooke speaks with John List, Professor in Economics at the University of Chicago and Chief Economist at Lyft. John talks us through some of the key takeaways from his recent book ‘The Voltage Effect’, which offers guidance around how to identify the ideas that will be successful when scaled, and how to avoid those that won't. Drawing from his career as an experimental economist and sharing stories from his own personal and professional life, John sheds light on the economic and psychological forces that influence the scalability of ideas, products and policies. Some of the things discussed include:

  • The challenge of scaling great ideas, from the Petri-dish to the real world.
  • What is the Voltage Effect and how does it impact scalability?
  • 5 vital signs for scalable ideas.
  • Diseconomies of scale and why bigger isn’t always better.
  • Knowing when to pursue an idea and knowing when to quit.

About the Guest

John List

John List

John A. List is the Kenneth C. Griffin Distinguished Service Professor in Economics at the University of Chicago, and the Distinguished John Mitchell Professor of Economics, Research School of Economics, Australian National University. He received his B.S. in economics at the University of Wisconsin-Stevens Point and Ph.D. in economics at the University of Wyoming. List joined the University of Chicago faculty in 2005, and served as Chairman of the Department of Economics from 2012-2018. Prior to this, he was a professor at the University of Central Florida, University of Arizona, and University of Maryland.

List was elected a Member of the American Academy of Arts and Sciences in 2011 and a Fellow of the Econometric Society in 2015. He received the Arrow Prize for Senior Economists in 2008, the Kenneth Galbraith Award in 2010, the Yrjo Jahnsson Lecture Prize in 2012, the Klein Lecture Prize in 2016, and the Hartsook Growing Philanthropy Award in 2017. List was also named a Top 50 Innovator in the Non-Profit Times for 2015 and 2016 for his work on charitable giving. He served in the White House on the Council of Economic Advisers from 2002-2003 and is a Research Associate at the NBER, a Research Fellow at the Institute for the Study of Labor (IZA), a University Fellow at Resources for the Future (RFF), and a University Fellow at Tilburg University in the Netherlands.

His research focuses on questions in microeconomics, with a particular emphasis on using field experiments to address both positive and normative issues. For decades his field experimental research has focused on issues related to the inner-workings of markets, the effects of various incentives schemes on market equilibria and allocations, how behavioral economics can augment the standard economic model, on early childhood education and interventions, and most recently on the gender earnings gap in the gig economy (using evidence from rideshare drivers). His research includes over 200 peer-reviewed journal articles and several published books, including the 2013 international best-seller, The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life (with Uri Gneezy).

About the Interviewer

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Dr. Brooke Struck

Dr. Brooke Struck is the Research Director at The Decision Lab. He is an internationally recognized voice in applied behavioural science, representing TDL’s work in outlets such as Forbes, Vox, Huffington Post and Bloomberg, as well as Canadian venues such as the Globe & Mail, CBC and Global Media. Dr. Struck hosts TDL’s podcast “The Decision Corner” and speaks regularly to practicing professionals in industries from finance to health & wellbeing to tech & AI.

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