Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why You Trust a Recommendation More When It Costs Money
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the persuasion principle known as 'expensive advice bias' — the tendency to trust paid recommendations more than free ones because we assume higher cost signals higher value. They anchor the discussion in a 2018 study by the University of Chicago's Booth School of Business, where wine drinkers rated the identical wine higher when told it cost $90 versus $10. The hosts connect this to real-world pricing strategies in financial advisory, software (like the $500 'premium' tier at Superhuman)…
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