No. #133

Decoy Effect
- Altered Preferences with Additional Options

The decoy effect occurs when consumers change their preference between two options when presented with a third option that is asymmetrically dominated. This can be used in pricing strategies, product features selection, and more, subtly guiding users toward a preferred choice.

Read more on Wikipedia

Product example

A subscription service may offer three tiers, where the middle tier is priced closely to the highest tier but with significantly less value, making the highest tier seem more attractive by comparison.

Empathy tips


Strategic Option Placement

Use the decoy effect strategically in option placement to guide user preferences without coercion.


Transparent Comparison

Provide transparent comparisons that allow users to understand the value of each option.


User Testing

Conduct user testing to determine the most effective and fair use of the decoy effect.


Ethical Considerations

Consider the ethical implications of using decoy options to ensure fair treatment of users.

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