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What is the Decoy Effect? The decoy effect describes how, when we are choosing between two alternatives, the addition of a third, less attractive option (the decoy) can influence our perception of the original two choices.
In marketing, the decoy effect (or attraction effect or asymmetric dominance effect) is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated.
Jun 3, 2022 · What is the decoy effect? When people talk about the “decoy effect,” they are referring to asymmetric decoys. These work by being “asymmetrically dominated.”
Feb 17, 2019 · The decoy effect is defined as the phenomenon whereby consumers change their preference between two options when presented with a third option – the “decoy” – that is “asymmetrically...
Dec 22, 2023 · What is the Decoy Effect? The decoy effect was first described by academics Joel Huber, John Payne, and Christopher Puto in a paper presented in 1981. While defining the effect, the researchers asked the participants to choose from scenarios that included beer, cars, restaurants, lottery tickets, movies, and television sets.
Jun 20, 2022 · The Decoy Effect or the Asymmetric Dominance Effect is a cognitive bias in which consumers will tend to have a specific change in preferences between two options when also presented with a third option that is asymmetrically dominated.
The decoy effect is a phenomenon in which people’s preferences between two options change depending on the presence of a third, irrelevant option. The decoy option is typically designed in such a way that it makes one of the original options appear more appealing by comparison.
Sep 13, 2023 · The decoy effect has been a particular focus of study in the behavioral economics literature. The decoy effect is seen as an effective "Nudge" and is widely used by businesses. For example,...
Jan 1, 2024 · This study furthers debate in the decoy effect literature by exploring when and how a decoy can increase the preference for a target product. We help explain the inconsistent findings of decoy effect studies by considering the roles of salience perception and consumers’ risk aversion preferences.
Discover how the decoy effect, a phenomenon that influences our choices by adding a third option, works and why it matters for behavioral economics.
