Decoy Effect

The phenomenon where adding a third, less attractive option (the decoy) makes one of the original two options seem more appealing.

We evaluate options relative to each other, not in absolute terms. A strategically placed decoy makes the target option look like a clear winner by comparison.

• A medium popcorn priced almost as high as a large makes the large seem like the best deal.
• A subscription plan with fewer features at nearly the same price as the premium plan pushes you toward premium.
• A real estate agent showing you a slightly worse house at the same price to make the target house look better.

• Evaluate each option on its own merits, not relative to others.
• Remove the middle option mentally and see if your preference changes.
• Ask: 'Would I choose this if the other options weren't there?'
• Be suspicious when pricing structures seem designed to push you toward one choice.