Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Overvalues the Things You Build
Explore the IKEA effect: the cognitive bias that makes us value things we assemble ourselves more than identical pre-assembled items. Hosts Lucas and Luna dive into the landmark 2012 study by Norton, Mochon, and Ariely that quantified this effect using IKEA boxes and origami. They discuss why labor increases perceived value, how companies like IKEA and Build-A-Bear profit from it, and the downsides like the 'Not Invented Here' syndrome in workplaces. Includes a practical tip for shoppers: be suspicious of the effort you've put into a product when deciding what it's worth…
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