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 dig into the psychology of subscription fatigue. You sign up for a streaming service, a gym, a software tool—and then you never use it, but you keep paying. Why? It's not just laziness. It's a mix of the sunk cost fallacy, loss aversion, and the way our brains treat recurring charges as invisible. They unpack the research, including a 2020 study that found people overestimate how much they use their subscriptions by nearly 30 percent. They also talk about why companies design subscriptions to be hard to cancel, and…
The skinny
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