MENTAL MODEL · M12199

Decoy Effect

BusinessHigh supportBehavioral Economics

Included

Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Introducing an obviously inferior 'decoy' option changes people's relative preference between the two real options, guiding their choice.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

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. This third option is asymmetrically dominated when it is inf…

anchor

Anchor fast decisions

Introducing a 'decoy' that is clearly inferior to a target option but similar in one dimension changes people's relative preference, making the target option appear more cost-effective. The decoy provides a comparison anchor, pulling an otherwise evenly matched choice toward the favorable side.

MINIMUM ACTION

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Practice this model in one real situation:

When designing packages/plans, place a decoy next to the target option that is 'almost the same but worse' (e.g., more expensive and smaller)
have users choose among three options rather than two
the decoy is only used to set off the target and is not expected to be chosen.

Check to track your progress (stored locally)

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Source support: Explicit

link
en.wikipedia.orghttps://en.wikipedia.org/wiki/Decoy_effectZH · Explicit
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