Podcasts · Business

Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend

Fexingo

226 episodes

What really drives the way people spend, save, and invest? Behavioral economics challenges the textbook assumption of the rational actor by revealing the systematic biases and mental shortcuts that shape every financial decision. In this show, Lucas and Luna sit down at the research library to dissect the experimental evidence, from Kahneman and Tversky's prospect theory to Thaler's nudge framework, and test those findings against real-world pricing, marketing, and policy design. They walk through specific studies — the endowment effect in housing markets, the sunk-cost fallacy in subscription pricing, the framing of credit-card interest rates — and ask what those experiments imply for a consumer choosing a mortgage or a CFO setting a price. Lucas brings the investigative journalist's rigor, pressing for the exact sample sizes, replication rates, and alternative interpretations; Luna pushes back with the practitioner's instinct, asking whether a bias that shows up in a lab actually translates to a shopping cart on Amazon. The listener is not a beginner: you already know that people aren't perfectly rational. What you want is the nuance — the boundary conditions where biases flip, the studies that fail to replicate, and the ethical line between a nudge and a manipulation. Each episode leaves one open question hanging: if we know these biases exist, should the government regulate against them, or is that a cure worse than the disease? #BehavioralEconomics #ProspectTheory #Nudge #Kahneman #Thaler #EndowmentEffect #SunkCost #Framing #Bias #DecisionMaking #ConsumerBehavior #BehavioralFinance #Economics #FexingoBusiness #BusinessPodcast #ResearchLibrary #PolicyDesign #CognitiveScience Keep every episode free: buymeacoffee.com/fexingo

Episodes page 1 of 5

  1. The Scarcity Mindset and Financial Stress

    · 10 min · S5 E226

    This episode examines the psychological toll of financial scarcity, drawing on Sendhil Mullainathan’s research to explain how a lack of money reduces cognitive bandwidth. We look at specific data from rural India…

  2. How Your Brain Tricks You Into Buying Things

    · 8:11 · S5 E225

    We dissect the specific mechanics of 'nudge theory' and how choice architecture subtly manipulates daily spending. Lucas explores the landmark study on organ donation opt-in versus opt-out rates, while Luna examines…

  3. How The Sunk Cost Fallacy Traps Business Decisions

    · 9:05 · S5 E224

    We dissect why companies like Kodak and Blockbuster doubled down on failing strategies rather than cutting losses. This episode explores the psychology behind sunk cost, showing how emotional attachment to past…

  4. The Paradox of Free Shipping

    · 13 min · S5 E223

    We dissect why consumers willingly pay more for products just to unlock free shipping, a phenomenon that defies basic economic logic. Using data from the post-pandemic e-commerce shift and behavioral studies on…

  5. The Sunk Cost Fallacy In Business Strategy

    · 7:51 · S5 E222

    Lucas and Luna explore how the sunk cost fallacy distorts business decisions, from Hollywood blockbusters to software development. Using the concrete example of Quibi’s billion-dollar failure, they examine why…

  6. How Choice Architecture Shapes Your Money

    · 14 min · S5 E221

    We explore how the design of choices, not just the choices themselves, drives financial outcomes. Lucas and Luna examine the 'auto-enrollment' revolution in retirement savings, where default options turned…

  7. The Hidden Cost of Your Default Choices

    · 11 min · S5 E220

    Most people believe they make conscious financial choices, but behavioral economists know the truth is more subtle. In this episode, we explore the concept of choice architecture and how default options silently…

  8. How The IKEA Effect Hides Your True Costs

    · 8:14 · S5 E219

    We explore the IKEA effect, where people overvalue things they helped create. Using a specific case of DIY home renovation costs versus professional services, we analyze why you might pay more for less quality. We also…

  9. The Paradox of Choice in Financial Decisions

    · 9:32 · S5 E218

    In this episode of Behavioral Economics with Fexingo, we explore why having more options often leads to worse financial outcomes. Lucas and Luna dive into the specific case of retirement plan enrollment rates at large…

  10. How The Somatic Marker Hypothesis Shapes Financial Choices

    · 11 min · S5 E217

    Lucas and Luna explore the Somatic Marker Hypothesis, a concept from neuroscientist Antonio Damasio, to understand how bodily sensations guide financial decision-making. They examine why people often ignore logical…

  11. How The Endowment Effect Traps Your Retirement Savings

    · 11 min · S5 E216

    Lucas and Luna explore the endowment effect, a cognitive bias where ownership inflates perceived value. Using the specific case of defined contribution plans like 401k or 403b accounts, they examine why people hoard…

  12. How The Decoy Effect Shapes Your Financial Choices

    · 10 min · S5 E215

    We examine the decoy effect, a subtle manipulation where adding an inferior option changes your preference between two others. Using real-world examples from subscription services and investment funds, we show how this…

  13. How The Decoy Effect Distorts Your Investment Judgments

    · 8:34 · S5 E214

    We explore how the decoy effect, a staple of consumer marketing, quietly infiltrates investment portfolios. Using the classic three-option pricing model from the New Yorker popcorn study and modern mutual fund…

  14. The Decoy Effect And Smart Shopping

    · 9:53 · S5 E213

    Why does the middle option on a menu always seem like the best deal? In this episode of Behavioral Economics, Lucas and Luna unpack the decoy effect, a powerful cognitive bias that shapes everything from your coffee…

  15. The Zero Price Effect And Free Goods

    · 7:07 · S5 E212

    We explore the zero price effect, a behavioral quirk where consumers irrationally overvalue free items to the point of making poor financial choices. Using Dan Ariely’s chocolate experiment as our anchor, we break down…

  16. How Status Anxiety Drives Your Spending Habits

    · 10 min · S5 E211

    We explore the hidden engine of modern consumer behavior: status anxiety. While previous episodes covered mental accounting and the zero-price effect, today we dig into why people buy things they do not need to impress…

  17. How Loss Aversion Skews Your Long Term Wealth

    · 11 min · S5 E210

    We dissect the psychological mechanics of loss aversion, exploring why the pain of losing fifty dollars feels twice as intense as the joy of gaining it. Using the classic Kahneman and Tversky coin flip experiment as…

  18. How The Framing Effect Shapes Your Financial Decisions

    · 8:59 · S5 E209

    We examine the framing effect, a cognitive bias where people react differently to a particular choice depending on how it is presented. Using the classic Asian disease problem and modern portfolio examples, Lucas and…

  19. How Mental Accounting Distorts Your Spending

    · 9:01 · S5 E208

    We explore the 'if it was worth it' heuristic in daily financial decisions. Lucas and Luna examine how people rationalize purchases based on sunk costs rather than future utility, using a specific case of subscription…

  20. How The Halo Effect Skews Your Investment Judgments

    · 11 min · S5 E207

    We explore how the halo effect distorts financial decision-making, using the dramatic rise and fall of Theranos as a case study in why charisma overrides data. Lucas and Luna break down how investors confuse personal…

  21. How The Endowment Effect Distorts Your Investment Portfolios

    · 11 min · S5 E206

    We explore the endowment effect in behavioral economics, using a specific case from a major retail bank that mispriced its own stock due to internal bias. This episode examines how ownership creates artificial value…

  22. The Power of Zero in Consumer Pricing

    · 8:35 · S5 E205

    We explore the zero price effect, where removing a cost creates irrational demand spikes that defy basic economic logic. Using Dan Ariely’s chocolate experiments and modern subscription models, we explain why free…

  23. The Mental Accounting Trap In Your Wallet

    · 11 min · S5 E204

    Lucas and Luna explore how mental accounting causes people to treat money differently depending on its source. Using the classic casino chips example and modern credit card spending data, they reveal why treating every…

  24. The Power of Regret in Financial Decisions

    · 9:35 · S5 E203

    We explore how the anticipation of future regret shapes today's financial choices, using a specific case study from the 2008 housing crisis and recent retail data to show why avoiding loss feels more urgent than…

  25. How Scarcity Triggers Your Spending Spree

    · 11 min · S5 E202

    We examine the psychology of scarcity, focusing on how limited-time offers and artificial inventory constraints manipulate consumer behavior. Using the example of a major tech retailer's flash sale strategy and…

  26. The Sunk Cost Fallacy in Your Investment Portfolio

    · 9:33 · S5 E201

    Why do we hold onto losing stocks longer than logic allows? Lucas and Luna explore the psychological trap of sunk cost fallacy in personal investing. They examine how emotional attachment to a purchase distorts future…

  27. The Invisible Tax of Your Daily Decisions

    · 9:35 · S4 E200

    We explore the friction cost in behavioral economics, using the specific case of airport parking and grocery store layout to show how small inconveniences drain wallets. At Fexingo Business, we break down why your…

  28. How Choice Architecture Shapes Your Financial Life

    · 8:43 · S4 E199

    We explore how choice architecture, the subtle design of options presented to us, quietly dictates our spending and saving habits. Using the case of auto-enrollment in retirement plans as a central anchor, we examine…

  29. How The Endowment Effect Distorts Investment Portfolios

    · 12 min · S4 E198

    We dive into the psychological trap of holding onto losing assets simply because we own them. Using the classic Thaler and Kahneman experiments alongside real-world portfolio management failures, Lucas and Luna explore…

  30. How Nostalgia Drives Modern Consumer Spending

    · 9:47 · S4 E197

    We explore the 'retro-tech' boom, looking at why brands like Apple and Sony are monetizing nostalgia rather than just innovation. With a focus on the 2026 market shift toward emotional continuity over raw specs, we…

  31. The Savoring Effect In Your Daily Spending

    · 9:31 · S4 E196

    We explore the behavioral economics concept of savoring and why delaying gratification often increases long-term happiness more than immediate consumption. Using the example of a vacation planned months in advance…

  32. The Paradox of Choice in Consumer Spending

    · 8:46 · S4 E195

    We explore how an explosion of options actually paralyzes decision-making, using the specific case of Barry Schwartz's work and modern subscription stacking. From cereal aisles to streaming services, we look at why…

  33. How Your Brain Rewires Spending Habits

    · 9:25 · S4 E194

    We explore the psychology of habit loops in consumer behavior, focusing on how environmental cues trigger automatic spending rather than conscious decision-making. Using the specific case of retail layout design and…

  34. How Time Pressure Alters Your Financial Decisions

    · 5:13 · S4 E193

    We explore the psychological mechanics of time pressure in financial decision-making, focusing on how scarcity of time leads to poorer long-term outcomes. Using a case study from a major retail bank's checkout process…

  35. How Social Proof Drives Your Spending Decisions

    · 11 min · S4 E192

    We explore the mechanics of social proof, using the viral rise of Liquid Death water and the strategic silence of luxury brands like Rolex to understand how we mimic others' behavior. Lucas breaks down why seeing…

  36. The Zero Price Effect and Why Free Makes Us Blind

    · 14 min · S4 E191

    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…

  37. How Default Options Control Your Financial Choices

    · 7:45 · S4 E190

    We explore the profound power of default options in behavioral economics, using the landmark study on organ donation rates across European countries as our anchor. Lucas and Luna break down how passive choices—like…

  38. The Decoy Effect In Your Daily Spending

    · 8:20 · S4 E189

    Lucas and Luna unpack how the decoy effect quietly shapes your purchasing decisions, from streaming subscriptions to coffee sizes. Using specific examples like movie theater pricing and software tiers, they reveal why…

  39. How The Decoy Effect Shapes Your Subscription Choices

    · 9:55 · S4 E188

    We break down the decoy effect and how companies like Apple use it to steer your spending. Lucas and Luna explore why adding a middle-tier option makes the premium choice look irresistible, turning a simple purchase…

  40. The Sunk Cost Trap in Your Career Choices

    · 9:40 · S4 E187

    We explore why people stay in dead-end jobs or finish degrees they hate, driven by the sunk cost fallacy. Using a concrete example of a lawyer leaving law school to become a baker, we show how past investment shouldn't…

  41. The Illusion of Control in Personal Finance

    · 7:25 · S4 E186

    We explore how the illusion of control leads investors to overtrade and misprice risk. Using data from Barber and Odean on individual investor behavior, we examine why frequent trading often destroys returns rather…

  42. How The Decoy Effect Shapes Your Subscription Choices

    · 11 min · S4 E185

    We explore the decoy effect, a cognitive bias where adding a third, less attractive option changes how you value two existing ones. Using the classic popcorn pricing model and modern SaaS tiers, we show how businesses…

  43. The Framing Effect Behind Your Grocery Bills

    · 12 min · S4 E184

    We dissect the framing effect, showing how changing the presentation of information alters decisions without changing the facts. Using the classic fruit fly study and modern grocery store layouts, we explore why…

  44. How Mental Accounting Shapes Your Spending Habits

    · 9:27 · S4 E183

    Lucas and Luna dive into Richard Thaler’s concept of mental accounting, exploring why we treat money differently depending on its source. From tax refund splurges to casino winnings, they reveal how our brains create…

  45. The Endowment Effect in Your Digital Wallet

    · 7:23 · S4 E182

    We explore how the endowment effect distorts digital spending, using a specific case of a premium streaming subscription that users refuse to cancel despite low usage. Lucas and Luna break down why owning a digital…

  46. How Loss Aversion Shapes Your Financial Choices

    · 9:25 · S4 E181

    Why do we cling to losing investments or keep subscriptions we never use? In this episode, Lucas and Luna explore loss aversion, the behavioral economics principle that makes the pain of losing twice as powerful as the…

  47. The Decoy Effect In Your Daily Spending

    · 12 min · S4 E180

    We examine how the decoy effect shapes everything from your morning coffee to enterprise software contracts. Using a specific case study of a major streaming service's pricing tier redesign, we explore why adding a…

  48. The Scent of Sales How Smells Manipulate Spending

    · 12 min · S4 E179

    We explore the hidden power of environmental cues in retail, focusing on the famous pumpkin spice phenomenon and how ambient scents drive impulse purchases. Lucas and Luna break down why a bakery smell outside a…

  49. How Scarcity Drives Real Spending Decisions

    · 11 min · S4 E178

    Lucas and Luna examine the scarcity heuristic through the lens of limited-edition drops and dynamic pricing. They explore why perceived unavailability triggers irrational urgency, often overriding actual need. The…

  50. The Sunk Cost Trap in Your Daily Life

    · 9:44 · S4 E177

    We explore the sunk cost fallacy through three distinct lenses: a $2,000 treadmill gathering dust, a failing startup’s refusal to pivot, and the emotional toll of staying in a bad job. Lucas and Luna break down why we…

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