Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Discount as a Loss
In this episode, Lucas and Luna explore the behavioral economics concept of 'discount aversion' — why consumers often react to a price cut with suspicion rather than excitement. They examine a 2023 study from the University of Chicago's Booth School of Business showing that a 20 percent discount on a $50 kitchen appliance reduced purchase intent by 12 percent among participants who had previously seen the full price. The hosts discuss the role of reference points, the psychology of price anchoring, and how companies like J.Crew and Patagonia have navigated this paradox. They…
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