Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Pricey Watch as a Bargain
In this episode, Lucas and Luna explore the psychology of premium pricing—why we often perceive a $10,000 watch as a better deal than a $200 one. Drawing on research from behavioral economics, they discuss the concept of 'price anchoring' and how luxury brands use it to their advantage. They examine a real-world case: a Swiss watchmaker's limited edition that sold out in hours, despite a price tag that could buy a small car. They also touch on the role of social signaling and the 'Veblen effect,' where higher prices actually increase demand. By the end, you'll…
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