Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Ikea Effect Why You Love What You Build
In this episode, Lucas and Luna explore the Ikea effect — the cognitive bias where people overvalue products they partially assemble themselves. Using Ikea's iconic flat-pack furniture as the central case, they trace the bias from a 2011 Harvard study by Michael Norton, Daniel Mochon, and Dan Ariely to its modern-day applications in software customization, meal kit services, and even corporate onboarding. Lucas explains why a Billy bookcase you built feels more valuable than a pre-assembled one, and Luna pushes back on whether the effect actually holds for complex assembly. They discuss…
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