🎎

Decoy Effect

Create a new option that's easy to discard

Information
Decoy Effect

The decoy effect is a cognitive bias that occurs when people make a decision based on the presence of irrelevant options. The bias is named for the classic example in which people are more likely to choose Product A over Product B.



When presented with Product C (the decoy), even though Product C is inferior to both Product A and Product B. The decoy effect highlights the importance of considering all relevant information when making decisions. It also highlights the power of irrelevant options to influence our choices.



Real-Life Examples:




  • Popcorn & Drink Prices at Movies

  • Pricing Tiers on Websites

  • Insurance and Warranty Plans At Dealerships