Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Price Tag as a Memory Anchor
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore how the first price you see for a product—called an 'anchor'—shapes every subsequent price judgment, even when you know it's arbitrary. They dive into a 2003 field experiment by economist Dan Ariely where he asked students to write down the last two digits of their Social Security numbers, then bid on luxury goods. Students with high digits bid 60 to 100 percent more than those with low digits, revealing how completely irrelevant numbers can set a price ceiling in your mind. The hosts connect this to…
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