Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a .99 Price as a Bargain
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the left-digit effect, the cognitive bias that makes consumers perceive prices ending in .99 as significantly lower than the next round number, even when the difference is just one cent. They dig into the classic 2005 study by Thomas and Morwitz, which found that our brains anchor on the leftmost digit and round down $4.99 to $4, not $5. The hosts discuss real-world examples from retail pricing strategies, gas stations, and online shopping, and why this trick works even on savvy shoppers. They also examine the…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.