Steven Pinker on Speculation Bubbles, Super Bowl Ads, and What Leaders Need to Know About Group Psychology

In this episode of the HBR IdeaCast, Adi Ignatius interviews Steven Pinker, a psychology professor at Harvard University, about his new book, "When Everyone Knows That Everyone Knows." Pinker discusses the concept of "common knowledge," which is knowing something that everyone else also knows, and how it influences coordination, social relationships, and economic phenomena like speculative bubbles and marketing strategies. They explore examples such as the Emperor's New Clothes, Super Bowl ads, the toilet paper shortage during COVID, and the role of common knowledge in negotiations and authoritarian regimes. Pinker explains how common knowledge is generated through public signals and conspicuous events, and how it can be manipulated or eroded in the current media landscape. He also touches on the importance of balancing common knowledge with politeness and tact in personal relationships.