Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Round Number as a Trust Signal
This episode explores the behavioral economics of just-below pricing and round numbers. Lucas and Luna examine why we intuitively trust round prices like $10 more than $9.99, and how that trust shapes spending decisions. They dive into a 2023 study by researchers at the University of Florida that found round prices signal 'fairness' in contexts where buyers suspect hidden costs, like medical copays, taxi fares, and charitable donations. The hosts discuss how consumers unconsciously interpret $9.99 as a seller trying to trick them, while $10 feels honest and transparent. They also…
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