Decoy pricing effect (Asymmetrically dominated choice, asymmetric dominance effect)

Describes the effect that consumers tend to change their preferences between two options when a third option is added, which is clearly more desirable (dominant) than one of the original options, but less than the other one (asymmetric). If this third option (decoy) is priced close to the high-price option, consumers will often purchase the expensive option.



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