Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Prizes Instant Gratification Over Future Wealth
Ever wonder why saving for retirement feels so hard, even though you know it's smart? It's not just willpower — it's how your brain discounts future rewards. In this episode, Lucas and Luna dive into hyperbolic discounting: the cognitive bias that makes 50 dollars today feel more valuable than 100 dollars in a year. They explore the classic marshmallow test (and its controversial revisions), how credit card companies and buy-now-pay-later apps exploit present bias, and why automatic enrollment in 401(k) plans works so well. Specific examples include a 2024 study on…
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