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High Impact
Algorithm: High
Decision Making
Decoy Effect
"I wasn't going to buy the premium version until you showed me the ridiculously overpriced deluxe version."
What is Decoy Effect?

Preference changes caused by adding a less attractive option. Marketing's favourite psychological trick.

Real-World Impact

Manipulates consumer choices, increases spending on unnecessary upgrades, and explains why 'premium' options exist.

Fun Fact

This effect is so reliable that companies design entire product lines around it, creating 'decoy' products they never expect to sell.

Random Insight

"The only thing more predictable than human irrationality is humans' surprise at being irrational."