Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Pain of Paying Why Cash Hurts More Than Credit
Why does handing over a $50 bill feel different from swiping a card for the same amount? In this episode, Lucas and Luna dig into the behavioral economics concept of the 'pain of paying' — the psychological friction that makes cash purchases sting more than credit card transactions. They explore how credit cards and mobile payments reduce the immediate sensation of loss, leading people to spend more and underestimate their totals. The episode anchors on a classic study from MIT that showed how the method of payment changes what people are willing to pay for the same item. Lucas…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.