The Spread of Narratives

Shiller argues that narratives spread much like viruses—through communication, shared beliefs, and collective understanding. When a narrative resonates with enough people, it gains momentum and becomes part of the broader cultural and economic conversation. For businesses, this means that a powerful brand story can inspire collective action, establish trust, and drive market trends.

For example, when Tesla frames its mission as not just selling cars but “accelerating the transition to sustainable energy,” it creates a narrative that shapes public perception, driving customer loyalty and creating long-term brand equity.