In this episode of the “Freakonomics” podcast, host Zachary Crockett explores the economics behind everyday things. From the booming greeting card industry to the evolution of pizza box designs and the world of personal injury lawyers, this episode delves into the fascinating economic angles of these seemingly ordinary topics.
The greeting card industry is a thriving business, with millennials emerging as its largest customer base. While baby boomers bought cards for various occasions, the practice did not get passed down to Generation X. However, millennials are now spending more money on greeting cards, seeking meaningful and personalized cards for their “card-worthy” friends. This has led to a shift towards more expensive and artisanal cards found in smaller stores. Greeting card designs for millennials are influenced by trending themes, reflecting their edgy and self-deprecating humor. Despite competition from social media and e-cards, greeting cards hold sentimental value as a way to express feelings and maintain connections within the family.
Pizza boxes have undergone a significant evolution in design, from simple paper bags to the modern corrugated cardboard boxes pioneered by Domino’s. West Rock, a major player in the pizza box market, controls the entire supply chain and produces billions of pizza boxes annually. The design process focuses on functionality, ensuring heat retention, sturdiness, ventilation, and transportation sustainability. Custom artwork and branding are also incorporated into pizza box designs. Despite efforts to improve pizza boxes, some designs still have flaws in trapping steam, affecting the taste of the pizza. Inventive designs, such as boxes that transform into storage containers or tables, have emerged to address these issues.
Personal injury lawyers heavily invest in advertising to attract clients, requiring significant marketing budgets. The personal injury industry generates billions of dollars in revenue from verdicts and settlements. Advertising has democratized access to legal counsel, reducing the gap between wealthy and less affluent individuals in seeking representation. However, concerns have been raised about the public perception of lawyers due to the aggressive and sometimes controversial nature of their ads. Personal injury lawyers typically work on a contingency basis, receiving a percentage of the payout if they win a judgment or settlement. While personal injury trials are rare, settlements consider factors such as medical bills, wage loss, pain and suffering, and the nature of the injuries.
The economics behind everyday things can reveal fascinating insights into industries such as greeting cards, pizza box designs, and personal injury law. Millennials are driving a shift in the greeting card industry, seeking more personalized and meaningful cards. Pizza box designs focus on functionality and branding, ensuring the best pizza experience while also showcasing custom artwork. Personal injury lawyers invest heavily in advertising to attract clients, democratizing access to legal counsel but raising concerns about public perception. Understanding the economic angles behind these everyday things sheds light on the hidden side of these industries.