Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Free Trial as a Trap
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore why free trials feel like a gift but often end up costing us more. They drill into the specific psychology of the 'trial-to-paid conversion' — why we sign up, why we forget to cancel, and why companies design the cancellation process to be as painful as possible. Using the example of a popular streaming service and a gym membership, they break down the concepts of present bias, asymmetric regret, and the 'endowment effect' applied to a temporary service. Along the way, they discuss the ethics of…
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