The decoy effect, also known as asymmetric dominance, is a change in preference between two options caused by the addition of a third, inferior "decoy" option that is clearly worse than one of the original two but not directly comparable to the other. Adding the decoy makes the option it is inferior to appear more attractive by comparison, increasing the share of people who choose that option even though the decoy itself is rarely chosen. The effect has been demonstrated experimentally across choices including consumer products and subscription pricing tiers, and it is frequently cited in marketing and pricing research as a tool for steering consumer choice toward a particular option.
Facts
Core ClaimAdding an inferior third option that only partly competes with two existing options shifts choice toward whichever of the two dominates the decoy. 1 First Described Year Replication Standing Classification
Type of Phenomenon Connections
In Branch
Source Wikipedia: Decoy Effect
Sources
1. Wikipedia: Decoy Effect
WikipediaLead section
In marketing, the decoy effect (or attraction effect or asymmetric dominance effect) is a phenomenon in consumer decision-making in which the inclusion of unattractive third option can change the perceived preference between the other two.
References
Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis
lead section, phenomenon-kind classification
In marketing, the decoy effect (or attraction effect or asymmetric dominance effect) is a phenomenon in consumer decision-making in which the inclusion of unattractive third option can change the perceived preference between the other two.
View the Source 2. FORRT: FORRT Replications and Reversals
FORRTEntry: Decoy effectQuote, Entry: Decoy effect
Decoy effect (alternatives: asymmetric dominance; attraction effect). The Decoy Effect is a cognitive bias in which an individual’s preference between two options is influenced by the presence of a third, asymmetrically dominated option (i.e., a decoy similar but inferior to one of the original options). Individuals are more likely to choose the option that is similar to the decoy option than if the decoy were absent. Decoy effect has been replicated in different studies and contexts, though the magnitude of the effect can vary, particularly depending on the specific features of the options being considered and the context in which the decisions are being made. Statistics Status: replicated
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