In episode 1102, Judd Kessler discusses how to navigate the hidden markets that decide how scarce resources—like time and attention—get distributed.
Learn the rules of the hidden markets around you to hack your luck. In visible markets, prices determine who gets what. However, in hidden markets, there’s something else that decides how resources get allocated. Concert tickets and dinner reservations are typical examples, but hidden markets can also extend to the job market or your time. Each hidden market has its set of rules. Once you understand them, you can devise strategies to achieve your goals and get “lucky.”
Judd offers two strategies for succeeding in first-come, first-served markets:
- Recognize it’s a race. As the name suggests, the faster you are, the more likely you’ll get what you want. You can prepare better when you know it’s a race.
- Learn when to settle for silver. Choosing the most popular option means you’ll face tons of competition. But if you’re willing to settle, you’ll increase your chances of still getting something close to what you want.
Signal your interest and commitment to stand out in choose me markets. In the job market, for example, firms want to hire people who will stay with them for a long time. Show that commitment by putting effort into your cover letter, doing research, and networking with the people from that firm.
Use three Es to ensure you’re allocating resources optimally:
- Efficient. Are you and others getting the most out of those resources?
- Equitable. Are the people involved getting their fair share?
- Easy. Do people have to go through hoops to get what they need from you?
Continually evaluate if your current systems make sense. As Judd explains, many markets are the result of historical accidents. With time, they can become outdated and inefficient. For instance, Judd explains that he used to schedule meetings on a first-come, first-served basis. However, that system would often result in more important meetings getting outprioritized, which wasn’t a good use of Judd’s time or attention.
Focus on incentives instead of intentions when designing markets. For example, Judd used to reply to every student email since he wanted to be a responsive professor. Though his intentions were good, he soon realized he was incentivizing unnecessary work for both him and his students. Instead, he realized he could redirect students to the syllabus first, saving them all extra time.
Read/listen to the full conversation HERE.
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