How Your Brain Makes You Overpay for Fairness

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How Your Brain Makes You Overpay for Fairness

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Why do we walk away from a deal that benefits us just because it feels unfair? In this episode, Lucas and Luna explore the ultimatum game, a classic behavioral economics experiment that reveals how the brain's fairness circuits override pure self-interest. They discuss a 2023 meta-analysis of 79 studies showing that people reject offers of 20% or less roughly half the time, even when rejecting means they get nothing. The hosts connect this to real-world pricing strategies, from surge pricing to wage negotiations, and explain why companies like Uber and Amazon have learned to frame their algorithms to avoid triggering our fairness detectors. A subtle but revealing look at how 'fairness' is a cognitive bias with real economic consequences. #UltimatumGame #FairnessBias #BehavioralEconomics #Neuroeconomics #LossAversion #InequityAversion #DecisionMaking #CognitiveBias #GameTheory #EconomicPsychology #SurgePricing #WageNegotiation #PricingStrategy #FairnessHeuristic #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo

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