Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats Free Shipping as a Reward
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore why 'free' triggers such a powerful emotional response, using a landmark 2000 study by Shampanier and Ariely. They break down how Amazon, Zappos, and other retailers weaponize zero price to override rational cost-benefit analysis, and why consumers will spend $75 to avoid a $6 shipping fee. The hosts dig into the concept of the zero-price effect, the distinction between real and perceived value, and what it means for your wallet. Plus, they discuss practical ways to spot when 'free' is actually…
The skinny
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