Most People Don't Know Their Business (so asking them is useless)
I’ll admit it; I am rapidly becoming a skeptic when it comes to interview-based data. And the reason is that people (interviewees) just don’t know their business – although, of course, they think they do. For example, in an intriguing research project with my (rather exceptional) PhD student Amandine Ody , we asked lots of people in the Champagne industry whether different Champagne houses paid different prices for a kilogram of their raw material: grapes. The answer was unanimously and unambiguously “no”; everybody pays more or less the same price. But when we looked at the actual data (which are opaque at first sight and pretty hard to get), the price differences appeared huge: some paid 6 euros for a kilogram, others 8, and yet other 10 or even 12. Thinking it might be the (poor) quality of the data, we obtained a large sample of similar data from a different source: supplier contracts. Which showed exactly the same thing. But the people within the business really did not know; they...