Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats Windfall Gains as Found Money
Episode 56 of Behavioral Economics with Fexingo digs into the 'house money effect' — the behavioral bias that makes us spend unexpected gains more freely than earned income. Lucas and Luna anchor the discussion in a 2022 experiment where participants given a $50 windfall gambled 40% more than those who earned the same amount through work. They explore how casinos exploit the effect with chips and comps, how a 2025 study linked it to cryptocurrency trading behavior, and why your brain treats a tax refund differently from a bonus. The episode connects this bias to real-world financial…
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