Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Free Trial as a Sunk Cost
In episode 127 of Behavioral Economics with Fexingo, Lucas and Luna unpack the 'free trial trap' — why a no-cost trial actually makes you more likely to pay later. They anchor the discussion on a 2021 study of a major streaming platform that found users who started a 30-day free trial were 35% more likely to subscribe than users who received a straight discount of the same value. The hosts explore the psychology: the endowment effect, reciprocity, and how the brain treats a free trial as a product you already own. They also touch on why companies like Spotify and Apple Music lean on…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.