Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Sale as a Loss Aversion Trap
Episode 92 of Behavioral Economics dives into the psychology of sales. Lucas and Luna unpack a 2024 experiment showing that consumers actually feel a subtle loss when they see a '50% off' sign — because the brain frames pre-sale price as a forfeited reference point. They explore why a 40% discount feels better than a 50% one when the original price is high, and how retailers use 'sale' framing to trigger urgency without real savings. With examples from department stores and online flash sales, the episode reveals why your brain treats a discount as a loss of the original…
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