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 dive into the psychology behind why we stick with subscriptions we barely use. They explore the concept of sunk cost fallacy—how our brains treat a monthly fee as a loss we need to justify by continuing the subscription, even when it no longer provides value. Using the example of a $10 monthly gym membership, they discuss real-world data showing that consumers spend an average of $200 per year on forgotten subscriptions. Lucas explains the 'use-it-or-lose-it' framing that gyms exploit, while Luna shares a personal…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.