Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Ikea Effect Why You Value What You Build
Lucas and Luna explore the Ikea effect, a cognitive bias where people place disproportionately high value on products they partially created themselves. Using the example of Ikea furniture assembly, they explain why your wobbly bookshelf feels more valuable than a perfectly built one from a store. They discuss real-world applications: why instant cake mixes failed until they required adding an egg, why Build-A-Bear charges premium prices, and how companies like Nike and Lego use co-creation to boost customer loyalty. The hosts also unpack the limits of the effect—when does it backfire?—and…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.