Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Subscription as a Sunk Cost Trap
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore why subscription services exploit our tendency to treat monthly fees as sunk costs, leading us to overuse or keep services we no longer need. They dissect the psychological mechanism called 'subscription debt' — the feeling that you've already paid, so you must 'get your money's worth.' Using examples from streaming platforms, gym memberships, and software subscriptions, they reveal how companies design retention tactics around this bias. The hosts also discuss practical strategies to…
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