THE DECOY TRAP: How a Third Option Changes Your Decision

Have you ever changed your mind about what you wanted because another option made it look like a better deal?

In this episode of Circuit Breaker: Rewiring Your Decisions, we explore the Decoy Effect — a psychological phenomenon in which an extra, less appealing option can influence our preference between two others. We look at how the way choices are presented can shape what seems valuable, desirable, or worth choosing.

But are we choosing what we truly want — or are we being nudged by the options placed beside it? Discover how the Decoy Effect can influence our decisions, alter our preferences, and reveal just how much the presentation of a choice matters.

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