Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats Gift Cards as Free Money
Lucas and Luna explore the psychology of gift cards — why recipients often spend them differently than cash, and why retailers love them. They dive into the 'mental accounting' theory of Richard Thaler, the $23 billion in unspent gift card value sitting on balance sheets as of early 2026, and a surprising experiment showing people are willing to pay a premium for a gift card over cash. The episode breaks down how our brains categorize gift cards as 'found money,' leading to more indulgent purchases and higher spending. Lucas cites data from the National Retail Federation…
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