Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why You Pay More for the Same Item at a Different Store
Episode 76 of Behavioral Economics with Fexingo explores why your brain accepts higher prices for identical products depending on the store you're in. Lucas and Luna unpack the concept of transaction utility — how we judge a deal not just by absolute price but by the perceived fairness of the price relative to a reference point. Using examples like a $4 soda at a hotel minibar versus a convenience store, and a $50 bottle of wine at a restaurant versus a liquor store, they explain how retailers exploit this mental accounting. They also discuss a 2023 study from the Journal of Consumer…
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