Decision ArchitectureMedium Impact
Decoy Effect (Asymmetric Dominance)
Definition
Decoy Effect (Asymmetric Dominance) is the phenomenon where consumers change their preference between two options when presented with a third, asymmetrical option ('the decoy').
Real-world examples
Given a choice between Small popcorn ($3) and Large ($7), most buy Small. Introducing Medium ($6.50) as a decoy makes Large ($7) look like an incredible value.
- A subscription priced just below the premium tier, but with far less value, pushes buyers toward the premium option.
- Adding a deliberately unattractive middle size makes the large look like the sensible buy.
How to design for it (nudge strategy)
Incorporate a tier that is priced close to your premium tier but offers significantly less value, making the premium tier the obvious choice.
The evidence
Empirical findings linked to this bias are being added. Browse the findings database →
Related biases
Cite this page
Behavioral Economics Lab. "Decoy Effect (Asymmetric Dominance) – Definition, Examples & Evidence." Behavioral Economics Lab, https://behavioraleconomicslab.com/biases/decoy-effect.