Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Hates Losing a Penny More Than Finding a Dollar
Why does a $5 loss sting twice as hard as a $5 win feels good? In this episode of Behavioral Economics with Fexingo, Lucas and Luna dig into loss aversion — the cognitive bias that makes your brain treat losses as roughly two-and-a-half times more painful than equivalent gains. They unpack the classic Kahneman and Tversky experiments from the 1970s, walk through the 2.5-to-1 ratio that still holds in modern studies, and show how this bias shapes everything from investing behavior (why people hold losing stocks too long) to marketing tactics (why free trials with auto-renewal work). They also…
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