Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Free Shipping Feels Unfair the Zero Price Effect
In Episode 3 of Behavioral Economics with Fexingo, Lucas and Luna unpack the zero price effect — why we irrationally overvalue free items, even when the total cost is higher. Using real-world examples from Amazon's free shipping threshold to a famous MIT chocolate experiment, they explore how 'free' short-circuits our cost-benefit analysis. They also discuss how marketers exploit this bias with 'free gift' bundles, and what it means for your wallet. A concrete, research-backed look at one of behavioral economics' most powerful pricing tricks.
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The skinny
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