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Why Your Brain Treats a Flat Fee as a License to Consume

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Why Your Brain Treats a Flat Fee as a License to Consume

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This episode explores the 'flat-rate bias': why paying a fixed fee for unlimited access — whether at a gym, a streaming service, or a buffet — makes people consume more than they would with a per-use price, even when they'd be happier paying per use. Lucas and Luna dig into a 2015 study from the University of Chicago and the University of Minnesota that tracked 7,000 gym members: members who paid $80 per month visited the gym an average of 4.3 times per month, spending $18.60 per visit — more than twice the $10 per-visit fee. But those who bought a per-visit pass visited just as often and paid half as much. The hosts discuss why we fall for flat fees, how it affects streaming subscribers who binge shows they don't enjoy, and what the 'flat-rate bias' says about our desire to avoid the pain of paying. #FlatRateBias #BehavioralEconomics #SunkCost #GymMembership #SubscriptionEconomy #ConsumerBehavior #Overconsumption #PainOfPaying #MentalAccounting #RichardThaler #UniversityOfChicago #UniversityOfMinnesota #BuffetEffect #StreamingBinge #DecisionMaking #BusinessPodcast #FexingoBusiness #Economics Keep every episode free: buymeacoffee.com/fexingo

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