The Decoy Effect
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The Decoy Effect
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Why do our preferences change just because a third option is added? In this episode of Circuit Breaker: Rewiring Your Decisions, we explore the decoy effect — the phenomenon where introducing a strategically inferior option makes one of the original choices more attractive.
Discover how comparisons shape what we choose, why “irrelevant” options can steer decisions, and how to recognise when your preference is being nudged by the way choices are presented rather than what you truly want.
Studies and links:
Decoy Effect | Think Insights https://thinkinsights.net/strategy/decoy-effect
The Economist Magazine: A story of clever decoy pricing effect | The Strategy Story https://thestrategystory.com/2020/10/02/economist-magazine-a-story-of-clever-decoy-pricing/
Why do we feel more strongly about one option after a third one is added? | The Decision Lab https://thedecisionlab.com/biases/decoy-effect