The Compromise Effect Why We Pick the Middle Option copertina

The Compromise Effect Why We Pick the Middle Option

The Compromise Effect Why We Pick the Middle Option

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Episode 70 of Behavioral Economics with Fexingo digs into the compromise effect: why consumers consistently choose the mid-priced option, even when it makes no rational sense. Lucas and Luna explore a classic 1992 study by Simonson and Tversky involving microwave ovens, then connect it to modern examples like subscription tiers and car models. They unpack the psychological mechanism — extremeness aversion — and why your brain treats the middle as the safe default. Listeners learn how marketers use this bias to nudge them toward higher-margin items, and how awareness alone can shift spending decisions. The hosts also briefly discuss listener support via buy me a coffee dot com slash fexingo, which keeps the show free and ad-free. #CompromiseEffect #ExtremenessAversion #ItamarSimonson #AmosTversky #DecisionBias #ConsumerChoice #BehavioralEconomics #MarketingPsychology #PricingStrategy #MiddleOption #MicrowaveOvenStudy #SubscriptionTiers #Irrationality #ChoiceArchitecture #Economics #BusinessPodcast #FexingoBusiness #BehavioralEconomicsWithFexingo Keep every episode free: buymeacoffee.com/fexingo
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