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How the Decoy Effect Steers Your Wallet
This episode unpacks the decoy effect—a pricing tactic that nudges you toward higher-margin options without you realizing it. Lucas and Luna start with The Economist's famous subscription experiment: when a $125 print-only option was added alongside a $59 online-only deal and a $125 print-plus-online bundle, sales of the bundle jumped dramatically. They explore why the decoy works, citing other examples like movie theater popcorn sizes, Apple's iCloud storage tiers, and Spotify's premium plans. The hosts dissect the psychology behind asymmetric dominance—how a strategically…
The skinny
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