The Placebo Economy: The Business Lesson from the Doctor Who Hypnotized the Parisian Elite

In this opinion piece, Hagai Goldovsky analyzes the story of 18th-century Dr. Mesmer, declared a charlatan, but argues that scientists missed the branding lesson: engineering emotional experience trumps objective facts. The article deconstructs three psychological mechanisms from Mesmer's clinic and applies them to modern branding.

In an opinion piece published in the 'Human Algorithm' column, Hagai Goldovsky, an entrepreneur and branding strategist based on behavioral psychology, analyzes the story of German physician Franz Anton Mesmer, who operated in Paris at the end of the 18th century. Mesmer claimed to have found a way to control 'animal magnetism' – an invisible fluid that cures diseases. A scientific committee led by Benjamin Franklin proved the fluid does not exist, and Mesmer was declared a charlatan. However, the author argues that scientists missed the branding lesson: Mesmer operated in the realms of experience engineering, not physics. The article deconstructs three mechanisms from Mesmer's clinic: breaking patterns through a dark environment and incense, objectifying abstract value through a wooden tub with iron rods, and emotional contagion by tying patients with ropes. The conclusion: modern brands lose customers when they forget they are selling psychology and feelings, not just features.