Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Subscription as a Sunk Cost
Episode 71 of Behavioral Economics with Fexingo explores the sunk cost fallacy and its powerful grip on subscription renewals. Lucas and Luna use the case of a $29.99/month gym membership to show how our brains double down on past investments, even when the rational choice is to cancel. They contrast gym behavior with streaming services, where companies exploit this bias through auto-renewal and annual plans. Listeners learn concrete strategies to recognize and resist the fallacy, including a simple 'cancel and re-evaluate' rule. The hosts also touch on broader implications for…
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