Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Zero Price Effect and Why Free Makes Us Blind
We examine the zero price effect, a behavioral quirk where the removal of cost triggers irrational enthusiasm. Using Daniel Ariely’s chocolate experiment and modern subscription traps, we show how free items bypass rational calculation. This episode explores why consumers overpay for products bundled with a free bonus, and how businesses weaponize this bias to drive volume.
#ZeroPriceEffect #BehavioralEconomics #DanielAriely #ConsumerPsychology #FreeGoods #DecisionMaking #PricingStrategy #FexingoBusiness #BusinessPodcast #MarketingScience #RationalChoice #IrrationalExuberance…
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