Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Halo Effect How One Good Trait Colors Everything
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the halo effect, a cognitive bias where a single positive impression in one area—like attractiveness or confidence—colors our entire judgment of a person or product. They anchor the discussion in a 2025 study from Wharton showing that job candidates with a firm handshake were rated 12% more competent overall, even though handshake quality has zero correlation with job performance. Lucas traces the term back to psychologist Edward Thorndike's 1920 paper 'A Constant Error in Psychological Ratings,' where…
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