Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Price Match as a Trap
Lucas and Luna explore why price-match guarantees actually reduce shopping around. Retailers like Best Buy and Home Depot rely on a behavioral quirk called 'cognitive closure' — once you see a price-match promise, your brain stops searching for better deals, even when the guarantee is hard to use. The hosts break down a 2024 study from the Journal of Marketing Research showing that price-match policies increase purchase likelihood by 22 percent but rarely result in actual claims. They also discuss the 'endowment effect' in reverse: shoppers treat the matched price as a…
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