Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Defaults to the Middle Option
Why do shoppers so often pick the middle-priced item on a menu or a shelf? In this episode, Lucas and Luna unpack the 'compromise effect' — the cognitive bias that makes the middle option feel like the safest, smartest choice. They trace the effect through real-world experiments by marketing professor Itamar Simonson, who showed that adding a high-end breadmaker actually boosted sales of the mid-range model. They also explore how companies like Williams Sonoma and movie theaters exploit this bias with 'decoy' pricing, and why your brain treats the middle as a compromise…
The skinny
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