Convenience Premium Over Yield

When financial products' returns approach zero, users continue using them because the value of convenience, liquidity, and psychological security outweighs the numerical yield difference. This reflects that in modern finance, friction costs—not absolute returns—are the primary drivers of user behavior.

Read the daily articles behind this idea on the Chinese edition.

Related principles

• ↗ Extends
  Monetization of Delegated Trust
• → Links
  Asset Re-pricing in Rising Rate Environment
• ↗ Extends
  Risk Diversification Drives Market Innovation
• → Links
  Market Segmentation via Freemium Moat
• → Links
  Zero-Sum Capital Allocation Trade-off
• → Links
  Service Sector Structural Upgrade as Dual-Circulation Engine
• → Links
  Platform Tiering / Membership Stratification