Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Pain of Paying Why Spending Feels Physically Unpleasant
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the concept of 'the pain of paying' — the visceral discomfort we feel when parting with money. Drawing on research from MIT and Carnegie Mellon, they discuss how payment method, timing, and transparency affect our spending decisions. They examine why cash feels more painful than credit cards, why prepayment can reduce spending pain, and why subscription models exploit this bias. Specific examples include how gyms make you pay upfront to minimize the monthly sting, and how Uber's seamless payment…
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