Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Refund as a Loss
Why do we feel worse returning an item than we did buying it? This episode digs into the psychological concept of 'psychological ownership' and the endowment effect in reverse. Lucas and Luna explore a 2023 study from the University of Texas, where shoppers who bought a blender for $50 felt a sting of loss when offered a $45 refund — even though they never actually owned the money. They discuss how retailers like REI and Zappos design return policies to soften this pain, and what it means for consumer behavior and brand loyalty in mid-2026.
#PsychologicalOwnership #EndowmentEffect…
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