>[!abstract] >The penny gap is a concept from behavioral economics describing the disproportionately large psychological barrier between a product being free and costing even a single penny. While the difference in price is minimal in absolute terms, the shift from zero to something introduces friction: consumers reconsider value, compare alternatives, or decide against purchase altogether. This gap explains why free samples, freemium digital models, and zero-cost promotions can drive far higher uptake than near-free offers. It illustrates how perceived cost, rather than actual magnitude, strongly shapes consumer behavior. >[!related] >- **North** (upstream): — >- **West** (similar): — >- **East** (different): — >- **South** (downstream): [[Freemium model]]