![]() ![]() ![]() Moreover, comparisons between like options (the decoy, and the more expensive option) are easier to make than comparisons between unlike options. The underlying reason here is that people are bad at assessing value in a vacuum, but good at comparisons. Even though no one buys option B, it will make them more apt to pick C than if option B hadn't even been shown in the first place! The idea here is that people will see option B (the decoy) as clearly the worse version of C. In the example he uses in the book, the subscriptions to The Economist are: The Decoy Effect is a pricing technique where the seller will include a 'decoy' at a high price which is clearly the poorer option of the item they want to sell. So far, it's been a great read-similar to Thinking Fast and Slow, but adopting a much more conversational style. I’ve now started Predictably Irrational by Dan Ariely, another behavioral economics book. ![]()
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