Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Hidden Fees Feel Like a Betrayal
Have you ever felt a flash of anger when a hotel adds a resort fee or an airline tacks on a baggage charge? In this episode, Lucas and Luna explore the behavioral economics behind why surcharges provoke a stronger emotional reaction than an equivalent price increase. Drawing on research from the Journal of Consumer Research, they discuss the concept of 'transactional fairness' and how separate fees trigger a sense of loss and betrayal. Real-world examples include the controversial resort fee model in hospitality and the unbundling of airline fares. The hosts also touch on the…
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