How Friction Influences Financial Decisions
This episode explores the concept of "friction" in behavioral economics, defining it as any resistance that shapes our decisions, particularly in financial contexts. It discusses how companies like Amazon leverage low friction (e.g., one-click ordering) to boost sales, and how companies can strategically use low friction for enticing initial offers while adding high friction to hidden terms. The episode provides practical strategies for listeners to harness friction, including automating savings, using budgeting apps, and adding friction to impulse spending (e.g., a 48-hour rule, deleting…
The skinny
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