Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Flat Rate as an All-You-Can-Eat Buffet
In Episode 129 of Behavioral Economics with Fexingo, Lucas and Luna explore the flat-rate bias — why consumers pay more for unlimited access even when they use less. Using the case of ClassPass, which shifted from pay-per-class to a monthly subscription, they unpack how the all-you-can-eat pricing model exploits our fear of missing out and our tendency to anchor on the highest possible value. The conversation delves into gym memberships, data from a 2023 study showing that 67 percent of gym-goers would save money by paying per visit, and why Netflix’s tiered plans prompt us to choose the…
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